Tue, 29 July
35.1 C
Yerevan
USD: 383.94 RUB: 4.85 EUR: 450.25 GEL: 141.78 GBP: 516.63

Standard&Poor’s forecasts inflation in Armenia at 2.5% in 2023

YEREVAN, August 28. /ARKA/. The S&P Global Ratings expects inflation in Armenia to average 2.5% in 2023, which is below the Central bank’s target

It recalls that inflation peaked at approximately 10% in mid-2022 but has since transitioned into deflation, decreasing to -0.5% in June.

Among other factors, the decrease can be attributed to base effects, the appreciation of the dram, and the Central Bank’s tight monetary policy stance, according to the agency.

It says that from 2024, robust consumer demand fueled by tourist arrivals and a tight labor market may cause inflation to rise. However, we anticipate these risks will be contained by the CBA’s restrictive monetary policy stance and the lagged impact of the dram’s appreciation on prices.

‘Therefore, we project inflation to average 2.5% this year, below the CBA’s inflation target (of 4%). Our inflation outlook leads us to expect the CBA will continue to gradually reduce its benchmark policy rate.’

Armenian government’ inflation projection for 2023 is 4% (±1.5%). Deflation was recorded in the country in June and July: 0.5% in June and 0.1% in July. According to the Central Bank’s June forecast, 12-month inflation will be slightly below the 4% target. -0-

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Fitch expects inflation in Armenia to remain within the target level until 2027

International rating agency Fitch expects inflation in Armenia to remain within the target level until 2027, although soft fiscal policy and the projected moderate weakening of the dram create certain risks.

Fitch forecasts Armenia to tighten fiscal policy after 2027

Fitch Ratings analysts forecast a tightening of fiscal policy by the republic's authorities in a new report on Armenia.

Armenia’s economy to stabilize on 5.5% growth trajectory in 2025 – EDB forecast

According to EDB forecasts, Armenia's economy will stabilize on a 5.5% growth trajectory with domestic demand remaining the main driver of development.

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

LATEST NEWS

spot_imgspot_imgspot_img