Armenia - Economic Transformation Development Policy Operation

Overview & Synopsis

The development objective of the Economic Transformation Development Policy Operation for Armenia is to support the economic transformation of Armenia by: (i) unlocking investment and trade and fostering competition and (ii) enabling greener and more resilient growth. Under the first pillar, the operation aims to foster business dynamism by modernizing the investment framework, removing key barriers to competition and trade, and promoting digitalization across government and the private sector. The second pillar introduces key building blocks for effective policy action on addressing the resilience and sustainability of the country’s economy, such as the development of the Climate Law, the introduction of a greenhouse gas (GHG) permitting system, and a green taxonomy to guide sustainable investment. These reforms will also make the investment climate more attractive to environmentally conscious investors. By integrating climate considerations into economic policy and regulatory frameworks, the reform program supports growth that is both inclusive and sustainable, positioning the country to better withstand future shocks and capitalize on the opportunities emerging from the peace process as well as from a rapidly changing global economy.