Fitch upgraded Armenia’s sovereign credit rating to BB- from B+, with a stable outlook, mainly driven by a significant reduction in the country’s debt-to-GDP ratio, declining from 60.2% in 2021 to around 46.7% in 2022, facilitated by robust nominal GDP growth, appreciation of the Armenian dram, and ongoing fiscal consolidation. The agency predicts sustained economic growth in the coming years, given the expected productivity enhancements due to recent labor inflows from Russia.