Economic activity in Armenia grew 7.7% year-on-year in the first seven months, exceeding initial forecasts – WB
14.09.2026,
19:08
Economic activity grew 7.7% year-on-year in January-July 2026, exceeding initial forecasts, according to the World Bank's Armenia "Monthly Economic Update – September 2026."
YEREVAN, September 14. /ARKA/. Economic activity grew 7.7% year-on-year in January-July 2026, exceeding initial forecasts, according to the World Bank's Armenia "Monthly Economic Update – September 2026."
It is noted that economic activity slowed to 6.5% year-on-year in July from 7.4% in June, but cumulative growth since the beginning of the year remains strong.
"Construction and non-trade services remain the main growth drivers, increasing by 26.5% and 17% year-on-year, respectively. The growth in construction was accompanied by a revival in the real estate market: the number of apartment transactions in Yerevan nearly doubled in July, while prices in the city center rose by 12.7% year-on-year, driven by demand from a new influx of Russians and the Armenian diaspora," the study states.
WB analysts note that the number of business registrations in July also increased by 29% year-on-year, driven by a 45.7% year-on-year increase in LLC registrations.
The report also notes that industrial production grew only moderately, by 3.1% year-on-year, as significant growth in mining (up 14.4% year-on-year) and manufacturing (up 5.9% year-on-year) was largely offset by a 24.5% year-on-year decline in electricity generation and the energy sector due to the temporary shutdown of the Armenian Nuclear Power Plant (ANPP) for scheduled maintenance.
Armenian Economic Figures and Forecasts
The 2026 state budget projects 5.4% economic growth for Armenia. According to preliminary data from the Statistical Committee, Armenia's GDP grew by 6.7% in the second quarter of 2026 compared to the same period in 2025. According to the Central Bank's monetary policy report for the second quarter of this year, Armenia's GDP growth is expected to be 4.5-4.1% by the end of 2026, depending on scenario (A-B).
International financial institutions' economic growth forecasts for Armenia for 2026: World Bank - 5.3%; IMF - 5.25%; ADB - 5.5%; EBRD - 5.5%; EDB - 6%; S&P Global Ratings - 4.9%; Fitch Ratings - 5.2%.
It is noted that economic activity slowed to 6.5% year-on-year in July from 7.4% in June, but cumulative growth since the beginning of the year remains strong.
"Construction and non-trade services remain the main growth drivers, increasing by 26.5% and 17% year-on-year, respectively. The growth in construction was accompanied by a revival in the real estate market: the number of apartment transactions in Yerevan nearly doubled in July, while prices in the city center rose by 12.7% year-on-year, driven by demand from a new influx of Russians and the Armenian diaspora," the study states.
WB analysts note that the number of business registrations in July also increased by 29% year-on-year, driven by a 45.7% year-on-year increase in LLC registrations.
The report also notes that industrial production grew only moderately, by 3.1% year-on-year, as significant growth in mining (up 14.4% year-on-year) and manufacturing (up 5.9% year-on-year) was largely offset by a 24.5% year-on-year decline in electricity generation and the energy sector due to the temporary shutdown of the Armenian Nuclear Power Plant (ANPP) for scheduled maintenance.
Armenian Economic Figures and Forecasts
The 2026 state budget projects 5.4% economic growth for Armenia. According to preliminary data from the Statistical Committee, Armenia's GDP grew by 6.7% in the second quarter of 2026 compared to the same period in 2025. According to the Central Bank's monetary policy report for the second quarter of this year, Armenia's GDP growth is expected to be 4.5-4.1% by the end of 2026, depending on scenario (A-B).
International financial institutions' economic growth forecasts for Armenia for 2026: World Bank - 5.3%; IMF - 5.25%; ADB - 5.5%; EBRD - 5.5%; EDB - 6%; S&P Global Ratings - 4.9%; Fitch Ratings - 5.2%.
