EDB names main drivers of Armenia's economic growth in Q1
YEREVAN, May 26. /ARKA/. The largest contribution to Armenia's GDP growth in Q1 2025 was made by the services sector. This is stated in the weekly macro review of the Eurasian Development Bank.
Armenia's GDP grew by 5.2% in Q1 2025.
"Financial activities, information and communications, real estate transactions, as well as construction (increased by 27.5%, 16.2%, 7.2% and 14% y/y, respectively). Household consumer spending and investment were the main drivers on the demand side (growth by 15.3% and 25.3% y/y, respectively)," the macro review says.
It is noted that net exports had a negative impact: exports of goods and services decreased by 53.4% y/y, imports - by 45.2% y/y in Q1 2025.
Figures and forecasts for the Armenian economy and inflation
Armenia's economic growth in the state budget for 2025 is envisaged at 5.1%. According to the Central Bank's report on monetary policy for the first quarter of this year, by the end of 2025, Armenia's GDP growth is expected to be within 7-4.8%, in 2026 - 4.7-4.1%, in 2027 - 4.7-6.1%.
The EDB forecasts Armenia's GDP growth at 5.5% in 2025. The WB expects Armenia's economy to grow by 4% in 2025, the IMF - by 4.5%, the EBRD - by 5%, and the ADB - by 6%. According to the forecast of Fitch Ratings, the Armenian economy will grow by 4.9% in 2025, and the UN expects the Armenian economy to grow by 5.2% in 2025.
The Armenian state budget for 2025 sets inflation at 3% (±1%). Inflation in Armenia in April was 3.2% y/y after 3.3% y/y a month earlier. According to the Central Bank's monetary policy report for the first quarter of this year, by the end of 2025, inflation in Armenia is expected to be within 2.6-2.4%, the forecast for 2026 is 3.1-2.9%, and for 2027 - 3%.
The World Bank expects inflation in Armenia to be 3.5% in 2025. The IMF predicts that prices in Armenia will grow by 3.3% in 2025. According to ADB forecasts, inflation in Armenia in 2025 will be 2.5%. EDB expects inflation in Armenia at the end of the current year at 3.1%. -0-
