Armenia records high macroeconomic indicators despite difficult  period - IMF

ArmInfo.On September 1, 2023, Armenia's Vice-Premier Mher Grigoryan hosted a delegation of  the International Monetary Fund (IMF) led by Mr Jihad Azour, Director of the IMF Middle East and Central Asia Department. 

Participating in the meeting were also Ms Iva Petrova, IMF Mission  Chief for Armenia, and Mr Umang Rawat, IMF Resident Representative in  Armenia.

The sides stressed that, despite the difficult period, Armenia has  recorded high macroeconomic indicators.  The sides highlighted the  importance of relevant government-implemented reforms. 

The sides also discussed the implementation of the IMF-supported  reserve programme and prospects for Armenia's economic development. 

On September 1, 2023, Armenia's Vice-Premier Tigran Khachatryan  hosted the IMF delegation. He briefed the delegation on the  developments in Armenia's economy and medium-term outlook and  stressed Armenia's consistent cooperation with the IMF in putting  them into practice. The sides highlighted the importance of the  IMF-supported reserve programme in the context of ensuring  macroeconomic and budget stability, encouraging investments and  export-oriented economic growth. The sides expressed their  satisfaction with the progress. 

The sides also discussed a wide range of issues of bilateral  cooperation, including prospects for cooperation with government  agencies dealing with fiscal and monetary policy. 

On June 12, the Executive Board of the International Monetary Fund  (IMF) approved the first revision of the current Reserve Program,  making 18.4 million special drawing rights (SDRs) available for  Armenia, equivalent to about 24.5 million USD. According to IMF  representatives, the program is generally in the stage of stable  implementation, as of the moment of the review, the targets of fiscal  and monetary quantitative indicators have been maintained, and good  progress has been made towards the implementation of structural  reforms.

IMF experts have highly evaluated the economic performance of Armenia  in 2022, highlighting the double- digit (12.6%) economic growth due  to the high level of consumption and external demand, as well as  large flows of capital and migrants. The improvement of the fiscal  position was also highlighted. the budget deficit decreased to 2.1%,  and the government debt/GDP ratio decreased by 14% to 46.7%, which  was due to the reduction of the deficit, high nominal economic growth  and the devaluation of the Armenian dram.

Armenia's economic prospects for 2023 have received a positive  assessment from the IMF, despite the presence of global and regional  risks. It is anticipated that the GDP growth rate will moderate but  remain at a level of 5.5% if there is a high level of consumption and  investments. Inflation is also expected to stabilize and remain  within the target set by the Central Bank.

It should be noted that the Reserve Program has a preventive nature  and aims to ensure the continuity of implementing structural reforms,  as well as to support the maintenance of macroeconomic, financial,  and fiscal stability.

See more at  https://www.imf.org/en/News/Articles/2023/06/12/pr23205-armenia-imf-exec-board- completes-1st-rev-under-stand-by-arrangement