YEREVAN, December 26. /ARKA/. Armenia’s Central Bank said in a report today that it expects the country’s GDP to grow this year by 7-7.3%, saying the growth is being driven largely by domestic demand and high private spending.
According to the Central Bank, the growing household preferences for durable goods has led to an increased demand for consumer loans. As a result, private spending growth has been driven by a fairly high growth in private consumption, financed by loans.
According to the Central Bank, along with accelerating economic growth in the external sector and weakening global uncertainty, medium term private investment will increase to contribute to economic growth.
Thus, private consumption in 2019 is expected to be around 11.4%, and the growth Under these conditions, the private spending growth is expected to be 9.9%.
In 2020, the structure of the demand will change slightly, private consumption and real growth in imports will gradually slow down (mainly due to a decrease in imports of vehicles) and net exports will be assisting economic growth.
On the other hand, government spending will contribute to economic growth, and in a certain short period, gross demand will be higher than gross supply.
As a result, in the short term, weak inflationary pressures are expected from the real sector, which, under the current monetary policy, will be neutralized at the end of the forecast horizon.