At the same time, the agency affirmed the long-term and short-term foreign and local currency sovereign credit ratings at ‘BB-/B’.
“The revision of the outlook to ‘positive’ reflects our view that there is potential for improvement in the regional geopolitical and security situation, especially in terms of further progress in normalizing diplomatic and trade relations between Armenia and Azerbaijan,” the agency said in a statement, which cited by Armenpress.
S&P Global Ratings assesses Armenia’s economic growth prospects as favorable, noting that the Central Bank of Armenia’s higher level of international reserves and flexible exchange rate should help mitigate potential external shocks.
“We forecast Armenia’s real GDP growth of 5.3 percent this year and 4.8 percent in 2027,” the report said.
The average growth rate of Armenia’s economy between 2022 and 2025 is 7.8 percent, one of the highest among the 143 sovereigns rated by S&P Global Ratings.
S&P Global Ratings forecasts that growth will be driven mainly by consumption and private investment. S&P Global Ratings forecasts that the fiscal deficit will average about 3.3 percent of GDP between 2026 and 2029.
