The 12-month inflation has increased significantly since March 2022, reaching 10.3% at the end of the second quarter, and then, as a result of the implemented monetary policy, it gradually decreased and reached 8.3% at the end of the year. This was stated by the Deputy Governor of the Central Bank Armen Nurbekyan at May 15 sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs, presenting the annual report on the activity of the RA Central Bank.
It was noted that the inflation rate will gradually weaken and stabilize around the target 4% index from the second half of 2023 under the influence of the implemented consistent monetary policy.
In the period from March to December 2022, the nominal cost of the Armenian AMD compared to the US dollar was about 20%, significantly promoting the mitigation of the expansion of the inflationary environment under the influence of foreign demand.
The Deputy Governor of the Central Bank also mentioned that the high rate of growth of economic activity is maintained in Armenia, which is significantly supported by the high external demand formed in the service sector, as well as the growth of the construction industry.
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During 2022, as a result of the significant increase in international visitors and financial flows, the AMD exchange rate has significantly increased in nominal and real terms.
In the fourth quarter of 2022, economic growth was 12.8%, which was slightly lower than the estimate of the previous programme of the Central Bank, but still remains high. The latter was mainly contributed by the high external demand in the service sector.
The Deputy Governor of the RA Central Bank responded to many questions of the Committee members, which were related to inflation, monetary policy, international investments, etc.
The questions of the deputies of the NA Civil Contract Faction Tsovinar Vardanyan and Davit Arushanyan were about the application of possible sanctions against our country. Armen Nurbekyan answered that sanctions are a priority for us, everything is being done so that the financial system of Armenia is free from sanctions. “We are having continuous discussions with the Government colleagues on this issue,” Armen Nurbekyan said.
The deputy of the NA Civil Contract Faction Hovik Aghazaryan positively evaluated the report of the Central Bank, proposed to legislatively regulate the existing problems regarding construction in order to avoid a possible crisis in this sector.
The Chair of the NA Standing Committee on Financial-Credit and Budgetary Affairs Gevorg Papoyan spoke about the problems of the construction industry and shared his concerns. “We have a problem of standards. That issue should be resolved, because each standard reduces risks with it,” the Committee Chair underlined.
The annual report on the activity of the RA Central Bank was taken into consideration.
National Assembly of the Republic of Armenia
