YEREVAN, June 13. /ARKA/. The 12-month inflation in Armenia in May 2022 was unprecedentedly high at 9%, Chairman of the Central Bank Martin Galstyan said at an extraordinary session of the parliamentary standing committee on fiscal issues.
Galstyan stressed that inflation is even higher in Armenia’s neighboring countries and partners, but it is important to understand that a 9% rise in the consumer price index implies that inflation for basic necessities is much higher.
The head of the Central Bank said that if exchange rates are higher than the current index, inflation in the country will rise even higher, which will inevitably affect the living standards of citizens. According to him, there is no problem of financial stability in Armenia at the moment.
“According to our forecasts, the current inflation of 9% may show some upward trend in the next few months, but if nothing unusual happens, we will have lower inflation at the end of the year,” he said.
Armenian government’s growth projection for 2022 is 7%, and the inflation is set at 4% (± 1.5%). Earlier, the Central Bank revised its growth forecast for 2022 1.6% from an earlier projection of 5.3%.
According to the World Bank’s latest Global Economic Prospects report, Armenia’s GDP in 2022 is expected to grow by 3.5%, down 1.3 p.p. from the previous forecast, made in January.
World Bank analysts expect Armenia’s GDP to grow by 4.6% in 2023 (0.8 p.p. down from the January forecast) and by 4.9% in 2024.
Armenia’s economic activity index (EAI) in the first 4 months of 2022 registered a 9.4% year-on-year growth, the National Statistical Committee reported earlier. -0-
