S&P Global Ratings revised its outlook on Armenia to positive from stable. Simultaneously, it affirmed the 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings.
“The revision of the outlook to positive reflects our view that there is the potential for improvement in regional geopolitical and security dynamics, specifically further progress toward normalizing diplomatic and trade relations between Armenia and Azerbaijan. We also view Armenia's growth prospects as favorable, while higher levels of the Central Bank of Armenia's (CBA's) international reserves and a flexible exchange rate should help mitigate possible unanticipated external shocks,” S&P said in a press release.
“We project Armenia's economic growth will soften to a still high annual average of 5% in 2026-2029 as resilient domestic demand mitigates the gradual tapering off of capital and labor inflows from Russia,” it added.
In 2022–2025, Armenia recorded a high average growth rate of 7.8 percent, ranking among the fastest growth rates of the 143 countries rated by S&P Global Ratings.
