YEREVAN, June 5. /ARKA/. According to the chairman of the Central Bank of Armenia Artur Javadyan, the fiscal policy of the country in 2018 was based on the new rules, in which the main emphasis was placed on balancing the stability of the national debt, which suggests in turn cuts on public debt and the budget deficit.

Speaking in parliament today he said these were the main reasons securing economic growth last year, when the government revised its spending in a bid to improve its efficiency. The move enabled to reduce the state budget deficit and the domestic demand.

Javadyan cited the Ministry of Finance, which say the fiscal policy in 2018 was restrained because of revenues and expenditures. He said the Central Bank responded to the restrained fiscal policy by a stimulating monetary policy, maintaining low interest rates.

In his words, low interest rates and credit growth enabled to partially neutralize the decline in demand. As a result, economic growth in 2018 was mainly influenced by high growth in private spending (10.3%), restrained fiscal policy, a slowdown in domestic demand and a weakening external inflation. Local inflation rate in 2018 was 1.8%, he said.

Javadyan noted also that the reduction of the budget deficit, of the shadow sector, changes in expenditure policy had a positive effect on debt and macroeconomic stability, as well as on improving the economic environment. -0-