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ARMENIA'S ECONOMIC GROWTH ROBUST YET NOT DIVERSIFIED - IMF
July 02, 2013 | 21:54
Armenia's economic growth is robust, although not diversified,
according to the sixth and final country review under EFF/ECF credit
program by the IMF Executive Board, Armenian News-NEWS.am reports.
Generally, economic policies of Armenia have delivered on the
objectives of the Fund's program.
The completion of the review allows the authorities to draw an
additional SDR 55 million (about $84 million), bringing the whole
disbursements to the planned SDR 266.8 million ($407.2 million),
approved in June 2010.
In line with the adopted policies, Armenia reached 4.7% growth in
2011, 7.2% in 2012, and stays strong in 2013. Inflation has remained
below the Central Bank's 4 percent target. Fiscal deficit has been
reduced over the past three years, which has included substantial
tax revenue increases.
The Central Bank of Armenia has permitted greater flexibility of the
national currency, Armenian dram, over the past year, rebuilt reserves
following sizeable intervention in May-June 2012, and strengthened the
monetary framework and operations. The CBA has also moved decisively
to implement Financial Sector Assessment Program and IMF technical
assistance recommendations. Banking sector indicators remain sound.
At the same time, significant challenges and vulnerabilities remain.
Robust growth has resumed, but has reflected in part rapid growth of
credit and consumption, favorable weather, and high metals prices.
More progress is needed to continue the external adjustment, reduce
poverty, and enhance the business climate. Implementation of the
authorities' stated policy plans should help, the IMF experts stated.
News from Armenia - NEWS.am
July 02, 2013 | 21:54
Armenia's economic growth is robust, although not diversified,
according to the sixth and final country review under EFF/ECF credit
program by the IMF Executive Board, Armenian News-NEWS.am reports.
Generally, economic policies of Armenia have delivered on the
objectives of the Fund's program.
The completion of the review allows the authorities to draw an
additional SDR 55 million (about $84 million), bringing the whole
disbursements to the planned SDR 266.8 million ($407.2 million),
approved in June 2010.
In line with the adopted policies, Armenia reached 4.7% growth in
2011, 7.2% in 2012, and stays strong in 2013. Inflation has remained
below the Central Bank's 4 percent target. Fiscal deficit has been
reduced over the past three years, which has included substantial
tax revenue increases.
The Central Bank of Armenia has permitted greater flexibility of the
national currency, Armenian dram, over the past year, rebuilt reserves
following sizeable intervention in May-June 2012, and strengthened the
monetary framework and operations. The CBA has also moved decisively
to implement Financial Sector Assessment Program and IMF technical
assistance recommendations. Banking sector indicators remain sound.
At the same time, significant challenges and vulnerabilities remain.
Robust growth has resumed, but has reflected in part rapid growth of
credit and consumption, favorable weather, and high metals prices.
More progress is needed to continue the external adjustment, reduce
poverty, and enhance the business climate. Implementation of the
authorities' stated policy plans should help, the IMF experts stated.
News from Armenia - NEWS.am