Responding to the growing concerns about the potential implications of the world’s financial crisis on Armenia’s fragile economy, PFA produced its second report on “Implications of the World Financial Crisis for Armenia’s Economy.” The Report begins with a sobering discussion of global economic conditions and their causes. It predicts that the existing adverse conditions in the world’s financial markets and real economies will have a strong impact on Armenia’s economy regardless of how isolated its relevant sectors are from the rest of the world. The Report offers a detailed account of Armenia’s vulnerabilities to the world’s crisis by focusing on the flow of remittances, trade- and investment-related factors, financial sector, and official financial assistance. In conclusion, the Report offers a set of specific recommendations that are likely to reduce the impact of the adverse global conditions on the Armenia’s economy.