Following a faster-than-expected recovery in H1, the projected GDP growth rate for Armenia in 2021 has been revised to 6.1 percent, up from 3.4 percent in April 2021, according to the World Bank's Economic Update for the region.
"Due to the twin shocks of the pandemic and the conflict with Azerbaijan, Armenia’s economy contracted sharply in 2020, which inflicted a significant welfare loss.
The economic recovery in 2021 has been faster than anticipated, and the economy is likely to return to pre-COVID output levels by mid-2022. The slow pace of vaccinations, rising COVID-19 cases, and geopolitical fragility present important risks to the outlook," the source said.
At the same time, the authors of the report do not rule out that pandemic-geopolitical risks may affect the recovery of the economy.
