On June 12, the Executive Board of the International Monetary Fund (IMF) completed the third review of the current reserve program, granting Armenia access to an additional 18.4 million SDR (about $24.5 million USD).
The total amount available under the reserve plan is 128.8 million SDR, of which Armenia can now utilize 73.6 million SDR (about $97.7 million USD). The program is precautionary and aims to support the Armenian government's policies, maintain economic and financial stability, and promote high, inclusive, and sustainable economic growth.
IMF representatives noted that Armenia is maintaining high economic growth rates in 2023, driven by strong private consumption, trade, and investment. Experts also pointed out the decline in inflation, attributed to lower local and global food prices, the strengthening of the dram, and the monetary policy of the Central Bank.
Additionally, the report highlights the low level of the state budget deficit and the moderate level of the current account deficit, reflecting the external position of the economy. Armenia's banking system has strong capital and liquidity buffers, and profitability remains high.
The IMF forecasts that Armenia's economic growth rate will decrease but remain stable at 6% in 2024, supported by high private consumption and public capital expenditures. Some increase in inflation to the target level is expected in the second half of the year.
Despite the risks associated with economic prospects, IMF experts believe that economic growth may exceed expectations due to higher-than-anticipated export revenues and the rapid implementation of reforms.
On December 12, 2022, the IMF Executive Board approved a 36-month precautionary SBA program for Armenia, supporting the authorities' efforts to maintain macroeconomic, financial, and fiscal stability and advance the domestic economic agenda. In June 2023, the board completed the first review under this program, granting Armenia access to 18.4 million SDR (about $24.5 million USD), and on December 15, completed the second review, providing access to an additional 18.4 million SDR (about $24.4 million USD).
