IMF has warned of growing risks of heat waves and water shortages for Armenia

YEREVAN, September 5. /ARKA/. Armenia faces growing climate risks, including rising temperatures, more variable precipitation patterns, extreme heat, and hydrological hazards. This is stated in the International Monetary Fund's report "Armenia: Climate Policy Diagnostic - July 2026," published on September 3, 2026.

The IMF notes that while Armenia's emissions remain low by international standards, they are increasing, with emissions concentrated in the energy sector.

The Fund notes that Armenia has strengthened its climate ambitions through its third Nationally Determined Contribution (NDC 3.0) and a long-term low-emission development strategy.

Adaptation priorities have been identified in the areas of water resources, agriculture, infrastructure, and disaster risk management.

At the same time, the IMF warns that without effective adaptation, climate change could lead to significant long-term economic costs.

The IMF also notes persistent gaps in policy implementation in the areas of water resource management, disaster resilience, energy transition, social protection, forestry, climate finance, and institutional coordination.

The IMF estimates that addressing these challenges requires improved governance, strengthened data systems and financing strategies, and expanded private sector participation.

According to the IMF's June forecast, Armenia's economic growth will slow to 5.3% in 2026, rise to 5.5% in 2027, and then remain at approximately 5% per year over the medium term. The IMF estimates nominal GDP in 2026 at AMD 12.3 trillion ($31.7 billion).