Policy Briefing 03/2020

Reviewing the Impact of the COVID-19 Pandemic on Foreign Direct Investment (FDI) and the Initial Responses of Investment Promotion Agencies (IPAs)


Economic Monitor Armenia – Issue 03 | August 2020 (update)

Overview: economic situation in 2020

  • GDP to drop by 1.5%; pre-COVID forecast: 5.5%
  • Strong reduction of private consumption and investment counteracted by gov spending
  • Budget deficit will amount to 5.0% of GDP, compared with pre-COVID plan of 2.3%
  • Current account deficit at 8.6% of GDP, only slightly higher than pre-COVID 8.4%
  • Strong decline in exports and remittances counterbalanced by large import contraction
  • But: lower FDI and reversal of private capital inflows create problems for financing the current account deficit
  • Augmentation of IMF stand by arrangement and immediate disbursement of USD 280 m key for financing both the budget and the current account deficit
  • Rather stable exchange rate, after temporary depreciation by 5% in March 2020

Policy Study 01/2019

Identifying promising target groups and key arguments for investment attraction measures of the Republic of Armenia