Open figure viewer
Significance
The war in Ukraine has driven large movements of people and capital into Armenia's small economy, fuelling double-digit GDP growth in 2022. Trade with Russia has boomed as supply chains are reshaped under the impact of sanctions.
Impacts
Strong economic performance has boosted Armenia's fiscal position but spending restraint will prevail due to inflation concerns.
Foreign investment is more stable but the rapid growth of non-resident banking deposits raises financial vulnerability.
The pressure on housing markets brought by Russian arrivals is creating some local discontent.
© Oxford Analytica 2023. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2023
You do not currently have access to this content.
