IMF: Armenia’s economy to contract more than 7% this year, unemployment to hit record high

IMF: Armenia’s economy to contract more than 7% this year, unemployment to hit record high
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  • calendar-gray 17 December 2020

Due to the COVID-19 pandemic (now in its second wave), and the recent military hostilities involving the Nagorno-Karabakh conflict zone, Armenia’s real GDP is projected to contract by 7.3% in 2020, APA-Economics reports citing IMF.

The country’s GDP amounted to $13.673 billion in 2019 while it’s expected to shrink by more than 1 billion to $12.663 billion. The unemployment rate is expected to hit an all-time high of 24.1%.

According to the IMF’s projection Armenia’s gross international reserves will drop by 21% on an annual basis to $2.251 billion.

Note that the Executive Board of the International Monetary Fund (IMF) completed the third review of the Republic of Armenia’s performance under the program supported by the Stand-By Arrangement (SBA). The completion of the the review will allow the authorities to draw SDR 25.714 million (about US$37 million), bringing total disbursements to SDR 231.7 million (about US$ 332 million).

Mirsaid İbrahimzade

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