World Bank: FDI inflows to Armenia in 2024 fell to a historically low level

YEREVAN, November 21. /ARKA/. The net inflow of foreign direct investment (FDI) to Armenia dropped fom 2.2% of GDP in 2023 to a historically low 0.3% of GDP in 2024.

In the first half of 2025, this figure saw a slight increase to 0.6% of annual GDP, as reported by the World Bank's (WB) Armenia Country Economic News.

"The majority of FDI was allocated to the mining and aviation sectors, while the overall reduction in FDI was attributed to a withdrawal of Russian investments from the mining sector," the report indicates.

World Bank Senior Economist Vicky Chemutai, addressing inquiries from journalists regarding the reasons behind the investment slowdown, identified existing security risks in the region as the main factor influencing investor decisions.

She further emphasized that enhanced investment could be achieved with a more equitable market environment.

During the presentation of the report, Armenian Finance Minister Vahe Hovhannisyan remarked that the future development of Armenia must be associated with an influx of foreign investment to boost productivity and improve work style and culture.

He elaborated that various measures are being undertaken to facilitate this, highlighting the forthcoming investment law as one of the initiatives.

According to Armstat, foreign investment inflows into the real sector of the Armenian economy during the first half of 2025 totaled 47,955.2 million drams, which is 59,317.5 million drams lower than in the first half of 2024. Of this amount, the FDI inflow for the reporting period reached 5,031.5 million drams, reflecting an increase of 26,950.8 million drams compared to the same period last year. ($1 - 381.61 drams).-0-