The World Bank published its Europe and Central Asia Economic Update (Spring 2022). The report says the economic growth in Armenia in 2022 is still expected to be 1.2% (deviation from pre-war forecast -4.1%), in 2023 it is expected to be 4,6 % (-1%) and in 2024 - 4,9%  (-0.9%).

“While domestic political uncertainty has subsided since snap elections in mid-2021, Armenia still faces significant structural constraints, such as weak connectivity, closed borders and no economic relations with two of its four neighbors and challenges related to high unemployment, skills mismatches and firm competitiveness,” the reports reads.

The WB experts believe that prudent macroeconomic policies including a more-effective inflation targeting regime, a robust fiscal rule, sound financial sector oversight, and pro-competition reforms helped Armenia weather the twin crises in 2020 with a lower-than expected increase in poverty rates.

The reports also stresses that the war against Ukraine and sanctions imposed against Russia affect world economies. Moreover, the main burden will fall on the developing economies of Europe and Central Asia.