Armenia's economy grew strongly in 2012. Prudent fiscal and monetary policies helped control inflation, narrow deficits in the budget and current account, and keep the ratio of external public debt to gross domestic product (GDP) manageable. Growth will likely continue over the medium term if the government implements plans to accelerate structural reform and mobilize revenues essential for prudent social and development expenditures.

Source: ADB estimates.

Economic performance

Government estimates showed economic growth accelerating to 7.2% in 2012 from 4.7% in 2011, with all supply-side sectors of the economy expanding.

On the demand side, growth was driven mostly by higher private consumption, while total investment and net exports reduced growth.

Economic outlook

With the outcome of the February 2013 presidential elections signaling the maintenance of current policies, continued but more moderate growth is expected in 2013 and 2014. Assuming continued structural reform and no further worsening of global economic conditions, GDP growth is projected at 4.5% in 2013 and 4.6% in 2014. Growth could be slower if external risks, including a further slowdown of growth in the Russian Federation and possible recession in the euro area, materialize.

Source: ADB. 2013. Asian Development Outlook 2013. Manila.

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