Moody's lifts Armenia outlook to positive

PanARMENIAN.Net - Moody's has revised Armenia's sovereign credit rating outlook from stable to positive, while reaffirming the country's Ba3 long-term sovereign credit rating, according to the Central Bank of Armenia.

The rating agency said its decision was based on several key factors.

These include lower geopolitical and political risks, driven by a reduced likelihood of a large-scale military confrontation with Azerbaijan, the ongoing normalization process with Turkey, the diversification of Armenia's external partnerships through deeper cooperation with the U.S. and the European Union, as well as continued domestic political stability.

Moody's also cited improved medium-term economic growth prospects. The agency expects Armenia's economy to expand by 5% to 5.5% in 2026-2027, supported by resilient domestic demand, rising investment, continued growth in the services sector and increased government spending.

In addition, the agency pointed to stronger structural economic potential, supported by higher investment, particularly in the technology and infrastructure sectors, continued economic diversification and expectations of higher productivity.