The European Bank for Reconstruction and Development (EBRD) has improved its forecast for Armenia's GDP growth from 2.5% to 3.5%, expecting similar growth in 2018 (instead of the previous 3%). This is stated in the Regional Economic Prospects in the EBRD Countries Operations (Regional Economic Prospects in EBRD Countries).

"Armenia's economic growth has gained momentum in the first half of 2017 after almost the stagnation in 2016. The country's GDP grew by 6.5% in the first quarter of 2017 and 5.5% in the second quarter. The growth of the economy was ensured by strong export figures, as well as the recovery of growth of money transfers to Armenia after a three-month reduction. On the other hand, in the first months of 2017, the volume of construction and agricultural production continued to decline. Inflation in the consumer market has slowly increased, reaching 0.6% in January-September 2017, which was due to the reduction of monetary conditions and the restoration of household consumption, "reads the report.

EBRD analysts expect Armenia's economic growth to boost economic recovery of key trading partner countries, but Armenia's economy remains vulnerable, including risks associated with external market instability. At the same time, the Nagorno-Karabakh conflict remains unresolved which can pose a threat to Armenia's economy.

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