Armenia experienced a notable 7.2% GDP growth in 2025, according to preliminary data, signaling an increase in living standards. This expansion was largely fueled by sectors including construction, finance, information technology, real estate, and trade. Key contributors were construction (1.5%) and financial activities (1.3%).
However, a significant decline of approximately 29% in foreign trade turnover contrasted sharply with this growth. Despite the trade downturn, several sectors demonstrated positive growth, including construction (20.2%), services (10%), electricity production (6.7%), mining (6.4%), and agriculture (around 5.6%), alongside trade (3%). Consumer prices rose by 3.3% year-on-year.
Concerns arose regarding the potential for an economic shock if these sectors experienced a downturn, prompting economists to advocate for cyclical policies and buffers against crises. The jewellery industry, spearheaded by Pargev Aloyan’s exports of gold jewellery to Kazakhstan, remained a key contributor, mitigating the impact of declining trade. Aloyan highlighted the extensive supply chain supporting the industry and the role of rising gold prices in shifting demand from domestic to export markets.
Furthermore, a government initiative to shorten the workday by an hour was deemed flawed by an economist. Recognizing the importance of future development, experts emphasized the need for modernization and training in artificial intelligence, anticipating rising global demand for AI specialists. Construction’s dominance was expected to diminish, with companies focusing on regional growth and diversification, including eco-cottage construction.
The ongoing income tax refund program for mortgages continued to drive construction activity in Yerevan, though volumes had halved compared to previous years. Ultimately, Armenia’s economic trajectory hinges on sustainable growth and strategic adaptation.
Topics: #growth #armenia #economic
