The Armenian economy suffered a major setback during the global crisis. Recent macroeconomic developments are encouraging, despite inflation pressures. The fiscal policy strategy appropriately addresses medium-term fiscal and debt vulnerabilities. The monetary policy has been appropriate. The...

Armenia’s third review under the Stand-By Arrangement and its request for Waiver of Nonobservance of Performance Criterion are discussed. The uptick in inflation was largely driven by exogenous factors, but it is important that these do not feed into further inflationary expectations. The...

This Selected Issues paper for the Republic of Armenia shows that building up fiscal space during economic expansions is crucial for the effective implementation of stimulatory policies during downturns. Armenia’s tax revenue remains one of the lowest in the region, and significantly below...

Although Armenia itself has a population of only about 3 million, an estimated 8 million Armenians live abroad. In this paper, the size and the sources of remittances to Armenia are first discussed. Then, the appropriate definition of remittances and subsequently present estimates of the...