News - Armenia's Economic Boom Surpasses Expectations

In an impressive economic display, Armenia's cumulative economic activity surged by 8.3% year-over-year from January through November 2025, as detailed in the World Bank's recent report, 'Armenia Monthly Economic Update – January 2026.' This growth significantly surpassed initial predictions, marking a notable period of economic exuberance for the nation. November alone witnessed a remarkable 10.4% increase in economic activity. The growth was predominantly fueled by a substantial rise in the industrial sector, which saw an increase of 31.7%, with mining and manufacturing (particularly in non-ferrous metals production) spearheading this growth at 36.5% and 36.2% respectively. The construction industry also experienced robust growth, increasing by 17.2%, while the services sector expanded by 11.2%. Wholesale and retail trade continued a moderate growth trend at 1.5%. Despite these positive indicators, there was a 16.9% decline in the number of newly registered enterprises in November compared to the previous month, with individual entrepreneurs decreasing by 20.5%, attributed to the high number of registrations exceeding 3500 in September-October. Armenia's economic growth projections are set at 5.1% for 2025, incrementing to 5.4% in 2026, as outlined in the state budget. The Central Bank's monetary policy report anticipates a GDP growth of 5.9% by the end of 2025, and forecasts range between 6.3% and 4.1% for 2026. Looking further ahead, the growth rates for 2027 are projected to span from 4.9% to 5.3%. International financial institutions corroborate these optimistic outlooks: the Eurasian Development Bank anticipates a 6% growth in 2025 and 5.3% in 2026; the World Bank predicts 5.2% in 2025 and 4.9% in 2026; the International Monetary Fund forecasts a steady 5% in 2025 and 5.5% in 2026; and the Asian Development Bank maintains a positive outlook with a 6% growth forecast.