YEREVAN, July 6. /ARKA/. Armenia’s economic activity hiked to 2.7% in January-May this year, due to growth in agriculture and industry, the press office of the Central Bank of Armenia reported.
The board of the central bank says the macroeconomic stability obtained in the beginning of the year helps promote economic activity recovery, according to the report. Optimistic performance results will be maintained contributing to lower prices for agricultural products than in the same period of the year before, says the report. Private consumption and investments will continue dropping in the second quarter of 2015, but the pace will be slower than expected. Deflation was 0.5% in May this year, bringing the 12-month inflation level to 5.1%.
The deflationary pressures will be counter-balanced by inflation due to electricity price hike as from August. Amid maintained refinancing rate the 12-month inflation will be close to the upper limit of the permissible range by the end of this year and will stabilize within the target level as from 2016, according to the report. In future the central bank will make adjustments to the monetary and credit policies, proceeding from internal and external developments, to ensure the target inflation levels in the country in midterm.–0—
