Finance Minister  talks about possible impact of Iran-Israel conflict  on Armenia`s economy

ArmInfo. Much depends on the extent and duration of the  escalation, as stated by RA Finance Minister Vahe Hovhannisyan on June 16 at a press conference, in response to a question from  ArmInfo regarding potential risks for the RA economy as a result of the Iran-Israel conflict.

According to the Minister, the Medium-Term Expenditure Program of Armenia for 2026-2028 does not reflect the risks associated with the escalation of the Iran-Israel conflict. Risk scenarios are taken into account in the budget document, he added.  Particularly, Hovhannisyan pointed out that the Cabinet of Ministers is considering various scenarios, with the most negative one projecting a slowdown in economic growth to 1.3%, instead of the anticipated 5.1% this year.

As the Minister explained, negative developments for the Armenian economy may be related to logistics, disruptions and delays in delivery times. Part of the logistics is related to deliveries from Iran, which may lead to an increase in the price of goods.  When asked if the Armenian authorities are holding urgent discussions regarding the Armenian cargo stuck in the port of Bandar Abbas and on the roads in Iran, as well as issues with Armenian heavy trucks in the direction of Georgia, potentially leadingt o  a total blockade,  Vahe Hovhannisyan noted  that such discussions are initiated by the Security Council of the Republic of Armenia. The head of the Ministry of Finance is not a member of the Security Council, he explained. In the near future, such discussions will likely take place, he added. Regarding the potential risks for the construction of a section of the North- South transport corridor in Syunik, where an Iranian company is the contractor, the minister believes that the conflict escalation  should not affect the work, as excavation is currently underway there.