On June 12, the Executive Board of the International Monetary Fund (IMF) approved the first revision of the current Reserve Program, making 18.4 million special drawing rights (SDRs) available for Armenia, equivalent to about 24.5 million USD. According to IMF representatives, the program is generally in the stage of stable implementation, as of the moment of the review, the targets of fiscal and monetary quantitative indicators have been maintained, and good progress has been made towards the implementation of structural reforms.
IMF experts have highly evaluated the economic performance of Armenia in 2022, highlighting the double-digit (12.6%) economic growth due to the high level of consumption and external demand, as well as large flows of capital and migrants. The improvement of the fiscal position was also highlighted. the budget deficit decreased to 2.1%, and the government debt/GDP ratio decreased by 14% to 46.7%, which was due to the reduction of the deficit, high nominal economic growth and the devaluation of the Armenian dram.
Armenia's economic prospects for 2023 have received a positive assessment from the IMF, despite the presence of global and regional risks. It is anticipated that the GDP growth rate will moderate but remain at a level of 5.5% if there is a high level of consumption and investments. Inflation is also expected to stabilize and remain within the target set by the Central Bank.
It should be noted that the Reserve Program has a preventive nature and aims to ensure the continuity of implementing structural reforms, as well as to support the maintenance of macroeconomic, financial, and fiscal stability.