Armenia to maintain one of the highest economic growth rates in CIS region at 6.5% in 2024 - Renaissance Capital

YEREVAN, February 7. /ARKA/. Armenia will maintain one of the highest economic growth rates in the CIS+ region at 6.5% year-on-year in 2024 after 8.1% growth in 2023, Renaissance Capital analysts said in a forecast.

"Armenia's economy remains a leader in the CIS+ region due to steady external inflows (including from Russia) and strong domestic activity while maintaining a decent mix of monetary and fiscal policies," Renaissance Capital's research says.

It notes that economic activity, reflecting the dynamics of major industries, increased by 9.4% y/y in 2023. High growth was recorded in construction (+14.8% y/y), trade and other services (+25.7% and +10.3% respectively).

"Armenia continued to benefit from the relocation of individuals and companies from Russia and the reorientation of financial and trade flows. Exports and imports of goods in 2023 increased by 55% and 40% year-on-year. By mid-2023, remittances from Russia have stabilized at a high level (more than double the 2021 level), although below last year's peaks," analysts note.

The Armenian government's forecast for economic growth in 2024 is 7%. According to the Central Bank's forecast, growth will be 6.1%.

The IMF forecasts 5% growth, while Fitch Ratings predicts 6% growth in 2024 and 4.9% in 2025. -0-