{"id":159185,"date":"2024-12-24T09:14:44","date_gmt":"2024-12-24T09:14:44","guid":{"rendered":"https:\/\/armbanks.am\/2024\/12\/24\/255754\/"},"modified":"2025-01-02T12:17:59","modified_gmt":"2025-01-02T12:17:59","slug":"armenias-central-bank-chief-forecasts-inflation-around-2-by-end-of-2024","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2024\/12\/24\/159185\/","title":{"rendered":"Armenia’s central bank chief forecasts inflation around 2% by end of 2024"},"content":{"rendered":"\n

YEREVAN, December 24. \/ARKA\/.<\/strong> The inflation rate in Armenia may reach 2% by the end of 2024, predicts the head of the Central Bank of Armenia, Martin Galstyan.<\/p>\n\n\n\n

According to him, inflation in Armenia as of November 2024 is about 1.4%, which is lower than the previously projected figure.<\/p>\n\n\n\n

\u201cThe main goal of the Central Bank is price stabilization. The legislature had previously set the inflation target at 4%. This was the case until recently, but now the target has been reduced to 3% at the initiative of the Central Bank. The fact is that all our studies, both theoretical and practical, have clearly shown that people\u2019s expectations of price stabilization are centered around 3% inflation,\u201d Galstyan said in an interview with Public Television of Armenia.<\/p>\n\n\n\n

As the head of the Central Bank noted, the inflation rate will gradually decrease, which will have a positive effect on the country\u2019s economy. According to Galstyan, this approach will significantly reduce inflationary fluctuations.<\/p>\n\n\n\n

\u201cIn other words, the lower the inflation rate and the closer we are to the target, the fewer fluctuations will occur,\u201d said the head of the Central Bank.<\/p>\n\n\n\n

Impact on Investments<\/em><\/p>\n\n\n\n

Galstyan also explained why, despite low inflation and relatively high financial and credit stability, investments in Armenia are declining.<\/p>\n\n\n\n

\u201cOne simple truth should be understood \u2014 our country is not in a vacuum. The investment environment is influenced by many factors, including exogenous (external) ones. These include geopolitical events, the country’s attractiveness as a place for doing business, and more. We have significant work ahead in addressing structural issues,\u201d Galstyan said in the interview.<\/p>\n\n\n\n

He emphasized that macrostability is crucial and cannot be overlooked, as it is an important factor in attracting investment.<\/p>\n\n\n\n

Figures and Economic Forecasts for Armenia<\/em><\/p>\n\n\n\n

The economic growth forecast for Armenia in the 2024 state budget is 7%, while the budget for 2025 projects GDP growth of 5.1%.<\/p>\n\n\n\n

According to the Central Bank\u2019s monetary policy report for the fourth quarter of the current year, Armenia\u2019s GDP growth for 2024 is expected to be 6%, with projections for 2025 ranging between 7.1% and 4.8%, for 2026 between 4.7% and 7%, and for 2027 between 5% and 6.2%.<\/p>\n\n\n\n

The EDB forecasts a 6% GDP growth for Armenia in 2024 and 5.5% in 2025. The World Bank expects a 5.5% growth in 2024 and 5% in 2025. The IMF forecasts a 6% growth for 2024 and 4.9% for 2025. The EBRD projects a 6.2% growth in 2024 and 4.8% in 2025. The ADB forecasts 5.7% for 2024 and 6% for 2025. According to Fitch Ratings, Armenia\u2019s economy will grow by 6% in 2024 and 4.9% in 2025. S&P forecasts a 6.2% growth for 2024, while the UN expects the Armenian economy to grow by 5.2% in 2024 and 4.8% in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

The inflation rate in Armenia may reach 2% by the end of 2024, predicts the head of the Central Bank of Armenia, Martin Galstyan.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[],"class_list":{"0":"post-159185","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-banks-en-en","7":"category-news"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/159185","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=159185"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/159185\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=159185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=159185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=159185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}