IMF Staff Country Reports

Armenia’s economic performance has been strong despite a series of shocks amid
an uncertain global environment. Thanks to the authorities’ agile policies and unforeseen
inflows of labor and capital, growth has exceeded historical trends and inflation has been
contained, while fiscal and external balances are largely in check. As the exceptional drivers of
growth are gradually tapering off, the challenge is to permanently raise Armenia’s economic
potential through sound policies and reforms that tackle lingering structural and institutional
weaknesses. The initialing of a peace agreement with Azerbaijan in August is a historic
breakthrough, which, if ratified by the two countries, would improve regional cooperation and
stability.