Armenia's Economy Grows by 7.3%: Construction Rises by 24.7%, Exports Plunge
Armenia's economic output grew by 7.3% from January through August compared with the same period last year, according to the Statistical Committee of Armenia. In August alone, growth stood at 5.2%. According to the World Bank, growth was 6.5% in July and 7.4% in June. Industrial output contracted by 4.3% in the same month.
Construction and services are driving growth
Construction grew by 24.7% to 471.6 billion drams. In August, the increase was 23.8%. Services (excluding trade) rose by 12.8% to 3.03 trillion drams. Trade showed little growth, rising by 0.7% to 4.39 trillion drams.
Industry grew by 7.4% over eight months to 2.07 trillion drams. Electricity generation rose by 5.3% to 6.27 billion kilowatt-hours. In August, it fell by 4%. Inflation stood at 4.4% in August.
Exports Fall, Imports Rise
The World Bank paints a different picture in its September country report. Exports fell by 15.7% in July. Imports rose by 21.5%. The trade deficit from January through July amounts to 10% of estimated annual economic output.
Vegetable exports plummeted by 52.2%. Total agricultural exports fell by 15.2%. Remittances from abroad rose by 40% in July, while those from Russia increased by 37.3%. The central bank has kept its key interest rate at 6.5% since August 4. Foreign exchange reserves reached a record high of $6.5 billion. From January through July, the national budget posted a surplus of 0.3% of GDP, although it projects a deficit of 4.3% for the full year. Non-performing loans remained at 1.4%.
Central Bank Governor Martin Galstyan believes the deficit is overestimated. On September 16, he said: “It may seem now as if we have huge imports, and that this is very bad because imports exceed exports.” As a counterexample, he cited the Firebird data center. He noted that importing graphics processors today could generate service exports later.
Forecasts range from 5% to 6%
The central bank expects growth of 5.3% to 5.7% for 2026. The World Bank forecasts 5.3%, and the International Monetary Fund forecasts 5.25%. The Asian Development Bank forecasts 5.5%. In the second quarter, growth stood at 6.7%.
For German exporters and investors, this means: Armenia imports more than it exports and is developing faster than almost any of its neighbors. Suppliers of construction machinery, construction technology, and data center technology are meeting strong import demand. However, the key interest rate of 6.5% makes local financing more expensive.
Sources: Statistical Committee of Armenia (EN), World Bank Armenia Monthly Economic Update 09/2026 (EN), Central Bank of Armenia (EN)
SK, Frankfurt