Armenia's economy to grow at 5% annually through 2027, SP predicts

p

YEREVAN, August 26. /ARKA/. Armenia's economy is projected to grow at an annual rate of approximately 5% through 2027, supported by increased productive capacities due to past inflows of capital and labor, particularly in the ICT sector, according to a forecast by international credit rating agency SP Global Ratings./pp

This growth rate surpasses that of the pre-pandemic decade, reflecting positive impacts on Armenia's economic structure and production potential. However, uncertainty persists due to global macroeconomic developments and regional geopolitical instability,nbsp;the agency's report highlighted./pp

SP maintained its previous forecast for Armenia's economic growth at 6.2% in the current year, driven by strong consumption, buoyed by a robust tourism sector, real wage growth, and increased government spending./pp

The report also noted that the influx of Russian labor and capital, which had initially boosted Armenia's growth, has slowed over the past two years. Nevertheless, a significant portion of the Russian workforce and businesses are likely to remain in Armenia due to ongoing political and economic uncertainty in Russia, reducing incentives for their return. Many of these Russian migrants work in Armenia's ICT sector, serving global clients, and their return could disrupt operations./pp

Armenia's 2024 state budget projects economic growth at 7%. The Central Bank of Armenia anticipates the country's economy will grow in the range of 6.1% to 6.8% in 2024./pp br/p