Fitch revises Armenia's Outlook to Positive; Affirms at 'B+'

Fitch revises Armenia's Outlook to Positive; Affirms at 'B+'

PanARMENIAN.Net - Fitch Ratings has revised Armenia's Outlook to Positive from Stable, while affirming the sovereign's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'.

The economy is experiencing a strong recovery following a large external shock in 2014-15, driven by a structural improvement in export performance, firmer external demand conditions and recovering remittances, and supported by a credible monetary policy framework. Fitch has revised up its growth projection to 4.3% for 2017 from 3.4% previously, as GDP growth averaged 5.3% in 1Q-3Q.

The agency expects growth to average 3.6% in 2018-2019 due to a still favourable environment for remittances and export growth.

Fitch forecasts the general government budget deficit will shrink to 3.3% of GDP in 2017, from 5.5% in 2016, reflecting expenditure restraint and favourable revenue growth. Fitch expects the general government deficit to narrow further to 3% in 2018 and 2.7% in 2019, below the 'B' and 'BB' medians.

Armenia is exposed to external shocks but has shown a capacity to absorb them, helped by a credible monetary policy framework, Fitch says.

The banking system remains stable with strengthened capitalisation (capital adequacy ratio (CAR) 19.1% in October).

 Top stories
Armenia's GDP grew by a strong 7.9% year-on-year in the third quarter of 2019, the World Bank said.
"This is the 3rd product of animal origin from Armenia for which EU grated access to its market," the EU said.
Masdar has entered into a formal agreement with Anif to develop 400 MW solar power projects in Armenia.
The meeting specifically focused on the possibility of investing and implementing new projects in the future.
Partner news