The Executive Board of the International Monetary Fund (IMF) completed the second review under the Stand-By Arrangement (SBA) with Armenia. This provides the country with access to about US$24.4 million (SDR 18.4 million), bringing the total access to about US$73.3 million (SDR 55.2 million). The Armenian authorities continue to treat the SBA as precautionary, the IMF informed in a
press release, which continues as follows, in particular:
“Armenia’s strong growth momentum continued through 2023. Supported by robust private consumption and investment, the economy is projected to grow by 7 percent in 2023 before moderating to 5 percent in 2024. Over the medium-term, growth is projected to reach its potential of around 4.5 percent, while steadfast implementation of structural reforms under the program could increase potential growth further. Inflation is projected to revert to the central bank’s target of 4 percent by mid-2024 and stabilize around it. The current account is projected to reach 3 percent of GDP in 2023 and 2024 due to robust consumption and investment demand. Foreign direct investment and capital inflows have moderated. Fiscal overperformance has persisted, with the overall fiscal balance remaining in surplus through September 2023, owing to higher than anticipated revenue collection and spending under-execution, notwithstanding the authorities’ prompt fiscal support to address the urgent needs of Nagorno-Karabakh’s refugees.
“The Executive Board today also concluded the 2023 Article IV consultation with Armenia.”
