Cenbank says growth could be higher than 1,6% projection
YEREVAN, MAY 24, ARMENPRESS. The Armenian Central Bank could revise the 1,6% growth projection.
Cenbank Governor Martin Galstyan said it is a “rather possible scenario”. However, inflation can also grow.
Lawmaker Gevorg Papoyan (Civil Contract) asked Galstyan whether or not the cenbank’s raising of the refinancing rate by 1,25% was appropriate given that the developments unfolded positively.
“The positive direction of the developments will contribute to stronger inflation background,” Galstyan answered. He said that the economy could grow in higher paces compared to the 1,6%.
“This is a rather possible scenario, at this moment looking at the preliminary figures we have a picture that compared to 1,6% we could have higher economic growth. And, if this higher economic growth will have the spending made by international visitors in its base, which create additional demand, the inflation background will not weaken – which would allow us to lower the rate – but it will actually get stronger, coupled with inflation pressures from the foreign sector, as well as the risks. In this case a certain revision of growth could happen,” he said.
He said the increase of the refinancing rate by 1,25% in March wasn’t only proportionate, but also mild.