THE PECULIARITIES ON ECONOMIC RECOVERY IN THE POSTPANDEMIC PERIOD IN THE REPUBLIC OF ARMENIA

Abstract

Due to the gradual elimination of restrictions on the economy and the anti-crisis measures of the RA government, since 2021, the macroeconomic indicators have been gradually restored in Armenia. The Russian-Ukrainian military conflict that started on February 24, 2022 interrupted the recovery of the world economy and also in Armenia. The economy of Armenia, which grew at a fairly high rate in 2021 after a sharp decline in 2020, was also affected by the Russian-Ukrainian war. Russia is Armenia’s main trade partner, and any problem that arises directly affects the latter’s economy. Disruption of value chains and rising commodity prices created high inflationary pressures on the economy. Considering the potential of the Russian market for the Armenian economy, the sharp fluctuations in the ruble exchange rate have negatively affected exporting and importing companies. The negative impact of the mentioned events on the RA economic activity was manifested in the short term with certain fluctuations. Considering the above, in fact, the spring forecast of the World Bank for Armenia was quite pessimistic, but in reality the picture was relatively more optimistic. In 2022, the macroeconomic environment of Armenia was mainly characterized by positive development trends, taking this into account, the International Monetary Fund revised its forecast for Armenia’s economic growth in June 2022, sharply increasing it from 1.2% to 3.5%.