Finance
Armenia's government approved the draft 2027 state budget on October 1, the same day it signed a €250 million credit agreement with the French Development Agency (AFD), according to the Armbanks weekly digest for September 28 to October 4.
Budget numbers
- Revenues: AMD 3.8 trillion.
- Expenditures: AMD 4.2 trillion.
- Deficit: AMD 468.2 billion.
The government targets average annual GDP growth of 6% over the next five years. The Asian Development Bank currently projects 5.0% for 2026 and 5.5% for 2027.
Ratings and macro backdrop
Moody's has maintained Armenia's rating at Ba3 with a positive outlook. Twelve-month inflation was 4.3% in September. An IMF mission concluded its review on September 28 in talks with Central Bank Governor Martin Galstyan, covering the macroeconomic situation, economic policy and structural benchmarks.
In the currency market the dram strengthened over the week: the euro fell from 413.19 to 407.29 drams (-1.43%) and the dollar from 363.34 to 362.55 drams (-0.22%), while the ruble rose 0.74% to 4.3363 drams.
Why it matters
The AFD facility adds external financing as the state plans a deficit equal to roughly 11% of projected spending. A positive Moody's outlook and a stable currency help keep borrowing costs contained, while the IMF review signals continued engagement on structural reforms. Investors will watch the parliamentary budget debate for revisions to growth and revenue assumptions.
Armenia has also been deepening financial ties abroad; in April the finance ministry signed a double-taxation elimination agreement with Qatar as part of efforts to broaden investment cooperation in energy, infrastructure and digital transformation.
Sources: Armbanks weekly digest (October 5, 2026); ARKA.
