On August 23, 2024, the international rating agency Standard & Poor's (S&P) confirmed the Republic of Armenia's long-term and short-term sovereign credit ratings for foreign and local currency obligations at "BB-/B." The outlook remains "stable."
The agency's decision is based on an assessment of the country's stable economic growth prospects, manageable level of public debt, and access to external financing. S&P also positively evaluated the prudent macroeconomic policies of the Armenian government and Central Bank, which have maintained macroeconomic and financial stability amid external shocks.
However, the agency also highlighted existing risks, particularly the vulnerability of the balance of payments and the geopolitical risks associated with the border delimitation process between Armenia and Azerbaijan, as well as peace treaty negotiations.
S&P maintained its economic growth forecast for Armenia at 6.2% for the current year. According to analysts, this growth will be driven by high levels of consumption, an expanding tourism sector, rising real wages, and increased government spending. In the medium term, the agency expects Armenia's economy to grow by an average of 5% annually until 2027.
BMG reminds that Armenia's economic growth in the 2024 state budget is projected at 7%, with inflation expected at 4% (±1.5%).
