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According to short-term forecast by the Central Bank, economic growth is predicted at 4.6% - 6.1% for Armenia in 2019, Artur Javadyan, the Chairman of the Central Bank of Armenia (CBA) stated on Monday, presenting the CBA annual Inflation report. In Javadyan’s words, the growth will be conditioned mainly with the volumes of private spending.

According to the presented report, relatively modest investment growth is expected in the country due to the recorded high growth in 2018 which has an impact on 2019 indices, while in the mid-term and long term perspective the economic growth will be conditioned with the enhancement of economic production volumes with consideration of the structural reforms implemented by the government and the expected economic growth potential in partner countries.

In Javadyan’s words, for the first trimester of the ongoing year the inflation has been mainly maintained at the relatively low level, amounting for 1.9 %, influenced by the weak demand

CBA reports thus finds it reasonable to leave the refinancing rate unchanged, given also the lack of significant inflationary effects from external and domestic economies in the upcoming period because of persistently weak global and domestic demand. Javadyan added that in view of predictable macroeconomic developments the Central Bank will continue keeping monetary conditions expansionary for as long as required, in fulfillment of the inflation target in the medium run. As a result, the expectation is that in the coming months the inflation will run below the target, stabilizing around the established value.