Inflation in Armenia remains at a low, manageable level
Inflation in Armenia remains at a low, manageable level, and most importantly, with low volatility. Prime Minister of Armenia Nikol Pashinyan expressed this opinion on his Facebook page.
Thus, according to Pashinyan, in January-July the average inflation amounted to 1.9%, and the 12-month rate reached 1.7%. "This has been ensured by a consistent increase in confidence in the national currency recently, which is also reflected in a reduction in inflationary expectations on the part of households," the Prime Minister wrote.
As the head of government indicated, according to a survey conducted by the Central Bank, almost all respondents (more than 95% according to the second quarter of 2019) expect that price stability will also continue in the future (in the context of 1-5 years), which very important for macroeconomic stability. "This means that households and organizations can plan their economic activities much better, as well as their savings and investments," the Prime Minister said.
According to the head of the cabinet, the increase in confidence in the national currency was also reflected in the consistent reduction in the level of dollarization. Over the past year, the indicator declined by about 4 percentage points, reaching 48.6% in July (the ratio of foreign currency deposits of residents to total deposits of residents). "This means that the majority of Armenian citizens - 51.4% prefer to keep their money in banks in drams, which is also very important, since it reduces the currency risks of business entities and helps to further improve the stability of the financial system," Pashinyan noted. ''By the way, I did the same, recently I sold my Hyundai car and keep the money in the bank in drams,'' the prime minister said.
To recall, according to the Law "On the State Budget of Armenia for 2019", GDP in Armenia is expected to be at the level of 4.9%, and inflation - 2.7%.