The supply disruptions caused by the situation in the Strait of Hormuz affect not only energy resources, but also goods that are essential for agriculture. The governor of the Central Bank of Armenia (CBA), Martin Galstyan, stated this at the meeting of the Nations Assembly Standing Committee on Financial-Credit and Budgetary Affairs on Monday, as he presented the report on Armenia's challenges in the first quarter of 2026 and the established monetary policy.

"There is a risk of rising food prices, which has already partially begun to become a reality," the CBA chief noted.

He recalled that since the beginning of 2026, instability and risks associated with the conflict in the Middle East, the growth and high volatility of energy prices, as well as the restriction of trade routes have intensified in the world. Risks of worsening economic growth prospects and a significant expansion of the inflationary environment are also observed in Armenia's main partner countries.

“In particular, the US economic growth slowed down somewhat in the last quarter, recording significant volatility. The trend of weakening economic growth in the Eurozone continued. And in Russia, economic activity indicators indicate a slowdown in economic growth and a significant weakening of domestic demand in the first quarter,” Galstyan added.

At the same time, the CBA governor pointed out that in the first quarter of 2026, high economic activity continues to be recorded in Armenia, which is largely contributed to by the significant growth of the construction and services sectors.

“In recent months, the high activity of the services sector [in Armenia] is accompanied by noticeable structural shifts towards those sub-sectors, the growth of which is mainly due to the expansion of demand. Certain signals of the expansion of external demand are also observed, which is primarily expressed in the increase in tourist flows to Armenia amid tensions in the Middle East,” the CBA head concluded.

Source: https://news.am/en/news/1036206