News - Armenia's economic expansion is expected to surpass 5% by 2026.

In a significant economic prognosis, the Eurasian Development Bank (EDB) forecasts Armenia's economy will continue its upward trajectory, poised to grow beyond the 5% mark by the year 2026. This growth is supported by a series of positive economic developments and fiscal reforms in the country. The Armenian government has been successful in reducing its public debt, which saw a decline from 67% of GDP in 2020 to an anticipated 51% in 2025, suggesting a strengthened fiscal position. The country's strategic fiscal consolidation efforts have been further exemplified by the improvements in international reserves and enhanced economic stability. Fitch Ratings, a global leader in credit ratings, took note of these promising trends, revising its outlook on Armenia's sovereign rating to 'positive'. The rating has been reaffirmed at 'BB-', reflecting the country's fiscal discipline, the bolstering of international reserves, and the overall resilience of its economy. In fact, by the close of 2025, Armenia's gross international reserves reached a historic high, amounting to $5.086 billion. This reserve level covers over four months of import needs, providing a financial safety net for the country. An overview of the debt landscape reveals Armenia concluded 2025 with a cumulative public debt of $14.531 billion, an increase driven by the country's strategic borrowing aimed at spurring long-term growth and infrastructural development. The additional fiscal headroom gained through economic reforms has afforded Armenia the means to fund crucial development projects without compromising financial stability. The central bank of Armenia's report corroborates this economic optimism, noting a significant and strategic uptick in the nation's international reserves over the past year. As of December 2025, foreign reserves had climbed to new peaks, symbolizing Armenia's improving capacity to manage external shocks. Economic projections for Armenia's growth in 2026 are echoed by several notable financial institutions. The growth rate for the nation in the forthcoming years is projected at 5.4% by the Armenian government's budget for 2026. Other international financial entities including the World Bank (WB), International Monetary Fund (IMF), and the European Bank for Reconstruction and Development (EBRD) have indicated growth expectations ranging from 4.5% to 5.5%, corroborating a widespread belief in Armenia's economic resurgence. In summary, with solid fiscal frameworks, a positive credit outlook, and impressive reserve levels, Armenia is set to nurture economic growth that could exceed expectations, making it a promising player in the regional economy by 2026.