IMF releases progress report on Armenia
The report said Armenia experienced restored growth between 2010-13, though challenges remain ahead to make Armenia's economy less vulnerable.
"Performance under the 2010-13, which was supported by arrangements under the extended fund facility and extended credit facility, was sound, with growth restored, large fiscal and external imbalances reduced, and buffers rebuilt," the IMF said.
The IMF said the largest difficulties ahead for Armenia include reducing vulnerabilities against external shocks and strengthening medium-term growth.
"In 2013, growth slowed significantly and inflation rose well above the (Central Bank of Armenia's) target range," the IMF said. "The external current account deficit and dollarization continue to be high, keeping the economy vulnerable to shocks."
Unemployment and poverty remain high, and the transition to an alternative growth model that involves a more open, competitive and globally-friendly economy has been slow.
Armenia requested a new 38-month arrangement under the extended fund facility with access to the equivalent of 89.4 percent of the quota. The arrangement would consolidate stability and buffers against external shocks and support growth through further reforms.
"If the program's policies are implemented, and barring any major shocks, the program should be able to achieve exit from fund support, with Armenia sustaining market access at the end of the program period," the IMF said.