CBA chief: Final peace deal would significantly boost Armenia's economy

Central Bank of Armenia (CBA) Governor Martin Galstyan said the finalization of a peace agreement between Armenia and Azerbaijan could deliver a major boost to Armenia’s economy.

Speaking at the parliament on Tuesday in response to a question from Civil Contract MP Babken Tunyan, Galstyan noted that international signals regarding the peace process have so far been largely positive.

While acknowledging that uncertainties remain, he stressed that a finalized treaty would have far-reaching economic implications.

“I believe that in the event of a finalized peace agreement, we would see a much stronger and more significant impact both in terms of reducing the country’s risk premium and attracting new investments to Armenia,” the CBA chief noted.

Galstyan did not rule out the possibility of revising economic growth forecasts in connection with the peace process.

“Previously, there was a high risk that the country's geopolitical risk premium would remain elevated. However, according to the Central Bank's assessment, the threat has now eased. Consequently, the shock component from Type A risks has also diminished. This will inevitably influence our decisions,” Galstyan added.