YEREVAN, June 10. /ARKA/. The ongoing economic uncertainty underscores Armenian authorities’ need for continuing efforts to build resilience and improve prospects for future growth, the International Monetary Fund (IMF) said in a press release.
According to IMF, the fiscal policy should continue to balance spending priorities and fiscal sustainability. Careful expenditure prioritization and improvement in spending efficiency alongside tax policy reforms and strengthened revenue administration are required to create fiscal space to meet spending pressures while maintaining debt at a moderate level.
Also, the central bank should continue to monitor economic developments, inflation dynamics, and inflation expectations closely and stand ready to adjust policy rates as needed to bring inflation back to target. The flexible exchange rate should continue to serve as a key shock absorber, with foreign exchange interventions limited to addressing disorderly market conditions.
The government should work to sustain long-term growth, the planned structural reforms to encourage diversification in the country’s export basket and markets, improve the business environment and corporate transparency, and enhance access to finance are welcome.-0-
