Republic of Armenia: Third Review under the Stand-by Arrangement and Request for Modifications of Performance Criterion and Monetary Policy Consultation Clause-Press Release; Staff Report

Republic of Armenia: Third Review under the Stand-by Arrangement and Request for Modifications of Performance Criterion and Monetary Policy Consultation Clause-Press Release; Staff Report
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Volume/Issue: Volume 2024 Issue 165
Publication date: June 2024
ISBN: 9798400278228
$20.00
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Topics covered in this book

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Exports and Imports , Inflation , Money and Monetary Policy , Public Finance , International - Economics , inflation expectation , energy inflation , monetary policy stance , supervisory framework , transparency policy , security spending , Inflation , Global

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Summary

The Armenian economy continues to perform strongly, and the outlook is broadly positive. Growth is decelerating gradually to more sustainable levels, as foreign exchange and migrant inflows peter out. Inflation has rapidly declined due to low imported food and energy inflation, Dram appreciation, and tight monetary policy. The uncertain external environment, however, poses sizeable risks, including from a slowdown in main trading partners, geopolitical tensions, and a possible reversal of capital flows.