World Bank improves forecasts for the growth of the Armenian economy in 2025 and 2026

YEREVAN, January 14. /АРКА/. According to the January report titled "Global Economic Prospects, January 2026," the World Bank anticipates that Armenia's economy will expand by 5.2% in 2025, 4.9% in 2026, and 4.7% in 2027.

In the previous June report, the growth forecast for Armenia's economy was set at 4% for 2025 and 4.2% for 2026. This indicates an improvement of 1.2 percentage points and 0.7 percentage points, respectively.

World Bank analysts foresee a deceleration in the economic growth of the South Caucasus, predicting a rate of 3.3% in 2026 and 3.1% in 2027.

Specifically, a decline in private consumption is anticipated in both Armenia and Georgia as economic activities return to normal from a previously high level, while a drop in remittances and export earnings is expected to exert pressure on the current account.

"The preliminary peace agreement between Armenia and Azerbaijan, reached in August 2025, is expected to enhance stability and promote deeper integration," the report states.

It is highlighted that potential setbacks in the peace process between Armenia and Azerbaijan could heighten the risk of reduced growth.

Conversely, advancements in the Armenian-Azerbaijani peace negotiations may bolster the integration of the South Caucasus.

The economic growth rate for Armenia in the state budget for 2025 is projected at 5.1%, while for 2026, it is estimated to be between 5.4% and 0%.-0-