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...

Economic activity appears to be recovering, underpinned by a strong policy response. Fiscal consolidation will be crucial to maintain debt sustainability and support the envisaged external adjustment over the medium term. Sound monetary and exchange rate policies are essential to maintain...