러시아ㆍ유라시아

External developments—notably relating to remittances and copper prices—have remained adverse, contributing to subdued domestic demand and deflationary conditions, but export performance has continued to be relatively strong. As a result, the current account deficit has narrowed further while pressures on the fiscal accounts have intensified. Cumulative tax revenues through September declined by ½ percent vis-à-vis the same period of last year, and show an even higher shortfall with respect to projections in the budget. On the positive side, the National Assembly approved the new Tax Code, which is expected to improve the tax environment considerably and boost medium-term revenues. Monetary conditions have stabilized, and the Central Bank of Armenia (CBA) has continued to unwind past tightening measures. Conditions in the banking sector remain challenging, with relatively high NPLs and low credit growth, but the sector remains well capitalized, and the CBA’s policy of increasing minimum capital requirements has led to an orderly consolidation process. A new Cabinet with a technocratic profile was appointed in September with the objective of strengthening economic management. New parliamentary elections are expected to take place in April/May 2017, as Armenia continues its transition from a presidential to a parliamentary system.