YEREVAN, April 14. /ARKA/. Armenia needs a moderate inflation rate, around the 4% projected in the 2017 government budget, Vardan Aramyan, finance minister, told journalists on Thursday.
In his words, the current deflation and deflation environment is not normal for Armenia’s economy – it is hobbling its development.
“It is necessary to make every effort to bring inflation back to the frames of the projected 4%, which is considered a normal indicator, which contributes to economic growth, while deflation hobbles it,” he said.
Aramyan said that deflation reduces investors’ potential income, and as a result, investors’ willingness to put their money in businesses fades. Therefore, Armenia should come back to the 4% (±1.5%) projected frames.
According to official statistical reports, Armenia ended 2016 with 1.4% deflation. Consumer prices in the country slid 0.3% in Jan-March 2017, compared with the same period a year earlier.
In the government budget for 2017, inflation is projected at 4% (±1.5%). --0---