Armenia:Democratic impulse,economic growth and the challenges of transformation for an economy under pressure

The strong economic growth supported by the influx of Russian migrants in 2022 and 2023 (12.6% and 8.3%, respectively), combined with improvements in the macro-fiscal framework driven by the ongoing Stand-By Arrangement program with the IMF, has resulted in stronger external accounts and public finances. The normalization of economic growth and rising global uncertainty make it essential to continue consolidation efforts in order to preserve recent gains. The country nevertheless remains marked by structural vulnerabilities demographic, socio-economic, and geographic in nature and faces numerous challenges in transforming its economy: the development and diversification of its industrial and productive base, the improvement of the business climate, and the strengthening of human capital will be key levers for ensuring sustainable and inclusive medium-term growth.