Economic activity in Armenia increased by 4.1% in the first quarter
YEREVAN, April 25. /ARKA/. Preliminary data reveals that Armenia’s economic activity indicator experienced a 4.1% increase in the first quarter of 2025 compared to the same period in 2024, as reported by the National Statistical Committee.
In March alone, the economic activity indicator grew by 3.7% when compared to March of the previous year and saw a significant increase of 11.9% from February of this year.
During the January-March period, industrial production reached 599,826.7 million drams, marking an 18.5% decline from January-March 2024. However, in March, the year-over-year decline was 16.9%, while a month-over-month increase of 15.9% was noted.
In agriculture, the gross output for the reporting period totaled 97,469.9 million drams, representing a commendable 10.5% increase from the same timeframe last year.
Meanwhile, construction activity in the first quarter surged by 13.6% year-over-year, with a total of 77,568.1 million drams recorded. March alone saw an annual growth of 15.5% and a remarkable monthly rise of 31.9%.
During the first quarter of this year, domestic trade turnover reached 1,343,627.6 million drams, marking a 6% increase compared to the same period last year. In March, the annual growth was recorded at 3.2%, while monthly growth soared to 16.9%.
Statistics indicate that the service sector's volume, excluding trade, hit 865,288.2 million drams over the three months of 2025, representing an 11.5% rise from the same period in 2024. March alone saw an annual growth of 10.1% and a monthly increase of 11.5%.
Looking ahead, the state budget for 2025 projects an economic growth rate of 5.1% for Armenia. As per the Central Bank's monetary policy report for Q1, Armenia's GDP is anticipated to grow between 4.8% and 7% by the end of 2025. In 2026, growth predictions are set between 4.1% and 4.7%, while 2027 is expected to see growth rates from 4.7% to 6.1%.
Various organizations have provided forecasts for Armenia's GDP growth: the EDB estimates it at 5.5% for 2025, the World Bank at 5%, the IMF at 4.5%, the EBRD at 4.8%, and the ADB at 6%. Fitch Ratings projects a 4.9% growth, while the UN forecasts a growth of 5.2% for 2025, followed by 4.7% in 2026. ($1 equals 389.56 drams)
