News - Central Bank official: Armenia banking system credit portfolio increased by 20.4% in 2023 compared to previous year

As of the end of December 2023, the credit portfolio of the banking system amounted to about 4.7 trillion drams, increasing by about 797 billion drams or 20.4 percent compared to the previous year, Hovhannes Khachatryan, Deputy Governor of the Central Bank of Armenia, told Armenpress "Deposits (demand and term) amounted to about 5.1 trillion drams, increasing by about 429.3 billion drams or 9.2 Deposits (demand and term) percent compared to the previous year. These indicators affirm that the banking system is evolving at a dynamic pace, contributing significantly to both the accumulation of savings and the financing of the Armenian economy through lending," Khachatryan added. And referring to the indicators of Armenia’s economic growth, as well as to the question of what the respective forecast is for this year, he responded as follows: "In 2023, according to the estimates from the Central Bank, annual economic growth is anticipated to be at a level higher than 8 percent, and in 2024, high growth is also expected within the framework of 6 percent. It is crucial to consider the factors influencing economic growth. In 2022, as mentioned, the primary driver of growth was high external demand, while in the last year, growth fueled by domestic demand in the construction and services sector became significant. The latter is also estimated to gradually weaken, and in 2024, we are expected to approach our long-term potential growth level of 5 percent. It is essential to emphasize that the entire toolkit of the Armenian Government, from the implementation of capital investments to various initiatives and measures aimed at improving the private investment environment, will be directed towards increasing potential growth in the coming years, with the goal of achieving the 7 percent indicator targeted by the Government."