Republic of Armenia

Since the 2014–16 regional economic slowdown, economic activity has recovered, while policies have remained broadly in line with staff’s advice. Supported by the upgraded fiscal rule, fiscal consolidation remains on track, and public debt has started to decline. Inflation is under control, the financial system remains stable, and pressures on the exchange rate have been limited. Nonetheless, important challenges remain. Importantly, the still-weak business climate and corruption constrain the ec