Republic of Armenia: First Review Under the Stand-By Arrangement, Request for Modification of Performance Criteria and Monetary Policy Consultation Clause-Press Release; and Staff Report

International Monetary Fund

No 2026/132, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents Republic of Armenia’s First Review under the Stand-by Arrangement. Armenia’s economic activity remains strong. Short-term risks to the outlook stem from the unprecedented uncertainty related to the war in the Middle East. Over the medium term, a potential slowdown in the growth of trading partners and tighter global financial conditions could affect Armenia. However, external and financial sector buffers remain strong. Strong fiscal performance is anticipated to continue in 2026. A sizable revenue overperformance is expected compared to the 2026 budget, supported by strong economic activity, tax policy measures, and ongoing revenue administration improvements. The central bank should continue to monitor economic developments, inflation dynamics, and inflation expectations closely and stand ready to adjust policy rates as needed to bring inflation back to target. In order to sustain long-term growth, planned structural reforms to encourage diversification in the country’s export basket and markets, improve the business environment and corporate transparency, and enhance access to finance are welcome.

Keywords: Imf staff estimate; financial system; transparency policy; exchange rate; inflation dynamics; headline inflation; inflation expectation; Real GDP growth; fixed capital; Executive board of the International Monetary Fund; central government; spending priority; Inflation; Middle East; Global (search for similar items in EconPapers)
Pages: 61
Date: 2026-06-10
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=576749 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2026/132

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().