Armenia’s economic growth eased in July, with inflation rising in August, and re-exports of gold and jewelry continuing to drive export and import growth. The deficit in July brought the cumulative budget balance to a deficit. Commercial bank deposits and credits grew in July, according to the World Bank’s Armenia Monthly Economic Update – September 2024.
In July, economic activity slowed down in various sectors, with some growth and some contraction. Mining continued to decline, but at a slower rate in July. Non-commercial, net money transfers also contracted in July. Inflation rose for the third consecutive month in August, driven by increases in transport prices and food prices.
Re-exports of gold and jewelry remained a key driver of export growth in July. The exchange rates of AMD against USD and RUB remained relatively stable. The budget deficit in July was largely due to an increase in expenditure. Commercial bank deposits and credits expanded in July, driven by AMD-denominated funds.
The financial indicators remained sound, with a comfortable capital adequacy ratio, low non-performing loans ratio, and a decent return on assets.
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