Middle East conflict has not significantly impacted Armenia's economic activity – WB
17.06.2026,
18:07
To date, the Middle East conflict has not had any significant observable impact on economic activity in Armenia, according to the World Bank's "Armenia Monthly Economic Update – June 2026."
YEREVAN, June 17. /ARKA/. To date, the Middle East conflict has not had any significant observable impact on economic activity in Armenia, according to the World Bank's "Armenia Monthly Economic Update – June 2026."
"Economic activity in January-April 2026 grew by 6.9% (y/y) compared to 4.7% (y/y) in the same period last year, maintaining positive growth momentum. Notably, in response to rising fertilizer prices, the government introduced a fertilizer subsidy program worth 900 million drams to support domestic farmers," the study states.
World Bank analysts note that economic activity growth in April, at 7.1% compared to 6.6% in March, continued to be supported by robust activity in construction, which increased by 24.7%, and mining, which grew by 31.8%.
"The mining sector continued to expand confidently, building on the recovery that began in late 2025 following previous sectoral challenges and a downturn, as well as rising copper prices. Manufacturing grew by 7.1% following a weak 1.3% growth in the previous month. The services sector (excluding trade) also demonstrated robust growth of 9.1%, while trade remained flat," the report states.
Armenian Economic Figures and Forecasts
The 2026 state budget projects economic growth in Armenia at 5.4%. In the first quarter of this year, Armenia's GDP, according to preliminary statistics, registered growth of 4% compared to January-March 2025. According to the Central Bank's monetary policy report for the first quarter of this year, Armenia's GDP growth is expected to be 7.1-4.7% by the end of 2026, 5.7-5.3% in 2027, and 4.9-5.2% in 2028, depending on scenario (A-B).
Armenian economic growth forecasts from international financial institutions for 2026: EDB - 5.3%; WB - 5.3%; IMF - 5.25%; ADB - 5.5%; EBRD - 5.5%; S&P Global Ratings - 5.3%; Fitch Ratings - above 5% (for 2026-2027).
"Economic activity in January-April 2026 grew by 6.9% (y/y) compared to 4.7% (y/y) in the same period last year, maintaining positive growth momentum. Notably, in response to rising fertilizer prices, the government introduced a fertilizer subsidy program worth 900 million drams to support domestic farmers," the study states.
World Bank analysts note that economic activity growth in April, at 7.1% compared to 6.6% in March, continued to be supported by robust activity in construction, which increased by 24.7%, and mining, which grew by 31.8%.
"The mining sector continued to expand confidently, building on the recovery that began in late 2025 following previous sectoral challenges and a downturn, as well as rising copper prices. Manufacturing grew by 7.1% following a weak 1.3% growth in the previous month. The services sector (excluding trade) also demonstrated robust growth of 9.1%, while trade remained flat," the report states.
Armenian Economic Figures and Forecasts
The 2026 state budget projects economic growth in Armenia at 5.4%. In the first quarter of this year, Armenia's GDP, according to preliminary statistics, registered growth of 4% compared to January-March 2025. According to the Central Bank's monetary policy report for the first quarter of this year, Armenia's GDP growth is expected to be 7.1-4.7% by the end of 2026, 5.7-5.3% in 2027, and 4.9-5.2% in 2028, depending on scenario (A-B).
Armenian economic growth forecasts from international financial institutions for 2026: EDB - 5.3%; WB - 5.3%; IMF - 5.25%; ADB - 5.5%; EBRD - 5.5%; S&P Global Ratings - 5.3%; Fitch Ratings - above 5% (for 2026-2027).
