International Monetary Fund forecasts gradual decline in Armenia's economic growth

The International Monetary Fund (IMF) has forecast a gradual decline in Armenia's economic growth, predicting a slowdown to 4.5 per cent per year in the medium term.

This projection, however, is contingent on continued economic reforms, which could boost the country's growth potential, Caliber.Az reports citing Armenian media.

The IMF's assessment, part of its review under the Stand-By loan agreement signed in December 2022, highlights Armenia's growth trajectory despite recent challenges. The review states that Armenia is set to receive another tranche of 18.4 million Special Drawing Rights (SDR), equivalent to $24.12 million. This brings the total disbursement from the loan to $120.6 million, out of the total loan amount of 128 million SDR ($171.1 million).

Despite the economic shocks faced in recent years, the IMF expects stable growth for Armenia, forecasting a 6 per cent growth in 2024 and 5 per cent in 2025. The IMF also anticipates inflation to remain below the Central Bank’s target of 3 per cent, with a permissible variation of +/-1 percent.

By Vafa Guliyeva