The international rating agency S&P Global Ratings (S&P) has confirmed Armenia's rating at B+ with a stable outlook, the agency said in a release.
The influx of Russian citizens and capital has dramatically accelerated economic growth in Armenia. According to the authorities of the country, since February 2022, 1,700 companies from Russia, Belarus and Ukraine have opened in Armenia, and another 3,100 entities have registered as private entrepreneurs.
The number of non-resident employees has grown to over 12,000. Gas prices remain stable thanks to long-term agreements with Russia at a fixed price of $165 per thousand cubic meters, well below current world prices. This is important insofar as gas remains the main energy source for the Armenian economy (61%) and about 80% comes from Russia.
Therefore, S&P increased the forecast for the growth of the Armenian economy in 2022 from 1.3% immediately to 8.6%. For the next few years, growth is expected to average 4.3% per year. At the end of 2022, S&P expects the government debt-to-GDP ratio to drop significantly. If at the end of 2021 it was 63% of GDP, then by the end of 2022 S&P expects it to be about 43%.