YEREVAN/JUNE 15 2021 (The Bulletin) — Armenia’s Central Bank said that the economy had rebounded faster than expected from both losing a war against Azerbaijan and also from the coronavirus pandemic, giving PM Nikol Pashinyan a boost ahead of a tight election.
The Central Bank also raised interest rates by half a percentage point to 6.5%, its highest level since 2016, strengthening the Armenian dram against the US dollar.
“Gross demand is recovering faster than expected, mainly due to the rapid growth of global demand, increased remittances, the high growth rate of private consumption, while private investment activity remains weak,” the Central Bank said in its statement.
Armenians vote in a parliamentary election on June 20. Polls put Mr Pashinyan ahead of his main contender, former president Robert Kocharyan, but they have also suggested that he may not win a majority.
— This story was published in issue 48 of the Central Asia & South Caucasus Bulletin, on June 16 2021
— Copyright the Central Asia & South Caucasus Bulletin 2021