EDB names reason for 10.4% decline in Armenia's industrial sector

YEREVAN, March 3. /ARKA/. The decline in Armenia's industrial sector (-10.4%) in January persisted due to the exhaustion of the positive effect from the increase in foreign trade and precious metals processing at the beginning of last year, according to the weekly macro review of the Eurasian Development Bank (EDB).

“Economic activity in Armenia increased by 7.1% YoY in January 2025.Trade and construction remain the key drivers of business activity. The services sector grew by 12.6% y/y, trade by 9.9% y/y and construction by 11.6% y/y. Exports and imports continued to decline (-36.3% y/y and -20.9% y/y, respectively),” the survey said.

Armenia's economic growth is envisioned at 5.1% in the state budget for 2025. Economic activity, according to preliminary data of Armstat, grew by 7.1% in January.

According to the Central Bank's monetary policy report for the fourth quarter of 2024, Armenia's GDP growth is expected to be between 7.1-4.8% in 2025, 4.7-7% in 2026, and 5-6.2% in 2027.

EDB forecasts Armenia's GDP growth of 5.5% in 2025. The WB expects Armenia's economy to grow by 5% in 2025, IMF - by 4.9%, EBRD - by 5% (4.5% in 2026), ADB - by 6%.

 Fitch Ratings forecasts Armenia's economy to grow by 4.9% in 2025, while the UN expects the Armenian economy to grow by 5.2% in 2025 and 4.7% in 2026.