Republic of Armenia: 2025 Article IV Consultation, Sixth Review Under the Stand-By Arrangement, Request for Cancellation of the Current Stand-By Arrangement, and Request for a New Stand-By Arrangement-Press Release; Staff Report; and Statement by the

Armenia’s economic performance has been strong despite a series of shocks amid an uncertain global environment. Thanks to the authorities’ agile policies and unforeseen inflows of labor and capital, growth has exceeded historical trends and inflation has been contained, while fiscal and external balances are largely in check. As the exceptional drivers of growth are gradually tapering off, the challenge is to permanently raise Armenia’s economic potential through sound policies and reforms that tackle lingering structural and institutional weaknesses. The initialing of a peace agreement with Azerbaijan in August is a historic breakthrough, which, if ratified by the two countries, would improve regional cooperation and stability.