According to the World Bank (WB), economic decline of 2020 in Armenia will reach the mark of 7.6% and recover up to 3.4% in 2021.

This assessment is provided by the “Europe and Central Asia Economic Update” (Spring 2021).

The report notes that before the coronavirus pandemic, Armenia was making gradual improvements to its business environment, but the COVID-19 pandemic and the war derailed the progress.

“Armenia suffered a severe COVID-19 outbreak, and the country’s conflict with Azerbaijan escalated dramatically in September 2020. Although the November 10th ceasefire halted hostilities, Armenia has since entered a period of heightened domestic political instability. These twin shocks led to a sharp economic contraction, increased poverty, and a fiscal deterioration. Nevertheless, Armenia maintained overall macroeconomic stability and healthy external buffers through the crisis,” the report said.

According to the World Bank experts, the regional economy will see s 3.6% rise this year.