YEREVAN, September 5. /ARKA/. Significant gaps in climate risk management, ESG competencies, information disclosure, and climate data continue to limit private sector investment in Armenia, according to the International Monetary Fund’s “Armenia: Climate Policy Diagnostic – July 2026” report, published on September 3, 2026.
The IMF assesses Armenia’s financial sector as relatively developed, but notes that it remains heavily reliant on bank financing, with limited capital market development and comparatively limited potential for green finance.
According to the IMF, pension funds with ESG mandates are a growing source of demand, but the supply of green financial instruments remains limited.
The IMF notes that climate finance inflows have generally met historical needs, but funding has been focused primarily on climate change mitigation activities and has come from sovereign sources or international financial institutions.
Meanwhile, funding for adaptation measures and mobilization of private sector funds remain limited.
The IMF’s priorities include the practical implementation of a national green taxonomy, improved disclosure of climate information and data systems, development of financial market infrastructure, and the consolidation of existing initiatives into a unified climate finance strategy focused on mobilizing investment and achieving measurable climate outcomes.
According to the IMF’s June forecast, Armenia’s economy, after growing by 7.2% in 2025, will expand by 5.3% in 2026 and 5.5% in 2027. The Fund estimates the country’s nominal GDP in 2026 at approximately $31.7 billion, compared to $29.3 billion in 2025. The IMF also cites improving the business environment, corporate transparency, and access to finance as structural priorities.
