News - Service and construction sectors drive Armenia's economic growth

YEREVAN, March 2. /ARKA/. The Eurasian Development Bank has identified the service and construction sectors as the main drivers of economic activity in Armenia during January 2026, reporting a 7.2% year-on-year growth in economic activity following a 9.1% rise in the previous year. These sectors experienced growth rates of 7.4% and 18.7%, respectively, alongside industrial contributions with a 10.6% increase. Despite these positive trends, the bank maintains its economic growth forecast for Armenia at 5.3% for 2026. Armenia's economy showed a 7.2% growth in 2025, with inflation rates reaching 3.3%. The state budget for 2026 anticipates a 5.4% economic growth. According to the Central Bank's recent monetary policy report, the GDP growth for 2026 is expected to vary between 4.1% and 6.3%, depending on the scenario (A-C), while 2027 forecasts suggest a growth rate between 4.9% and 5.3%. Economic projections for Armenia from various international financial institutions for 2026 indicate growth rates as follows: Eurasian Development Bank - 5.3%, World Bank - 4.9%, International Monetary Fund - 5.5%, European Bank for Reconstruction and Development - 5.5%, S&P Global Ratings - 5.3%, and Fitch Ratings projects a growth rate above 5% for 2026-2027.