IMF Staff Country Reports

This paper discusses Republic of Armenia’s Fifth Review under the Stand-by Arrangement (SBA) Request for a Waiver of Nonobservance of Performance Criterion, and Modification of the Monetary Policy Consultation Clause. Economic activity remains strong. Real gross domestic product growth is expected to reach 4.5 percent in 2025 as external growth drivers continue to taper off amid higher global uncertainty. The SBA aims to support the government’s policy and reform agenda to preserve economic and financial stability and support strong, inclusive, and sustainable growth. Fiscal policy should continue to balance the need to support national spending priorities while maintaining macro-fiscal stability, with further efforts to mobilize revenue and enhance spending efficiency. In order to sustain long-term growth, structural reforms should continue to advance reforms focused on improving labor market flexibility, diversifying exports, enhancing supervisory frameworks, and strengthening governance. Structural reforms should focus on improving labor market flexibility, diversifying exports, enhancing supervisory frameworks, and strengthening governance.