The Asian Development Bank (ADB) projects significant expansion in Armenia's industrial sector, including construction, over the next two years. According to the latest report, industry, including construction, is expected to grow by 6.2% in 2024 and further accelerate to 7.4% in 2025, propelled by robust growth in construction due to increased public investment and utilities.
Manufacturing is also forecasted to expand, driven by higher production of processed foods, textiles, and other non-metal products.
The growth of mining and quarrying industries will hinge on global commodity price trends and the establishment of new mining sites.
Construction activity is set to soar, with projections indicating a rise to 16.3% in 2024 and 18.1% in 2025. This aligns with the government's strategic plans to ramp up capital expenditure and make substantial public investments in infrastructure, particularly roads and social infrastructure.
Despite these positive outlooks, Armenia's agriculture sector faces persistent challenges, which are expected to limit growth to 0.9% in 2024 and 1.9% in 2025, or potentially less if weather conditions prove unfavorable.
In terms of inflation, while a slight acceleration is anticipated, it is expected to remain relatively low. With monetary easing measures in place, average inflation is forecasted to climb to 3.0% in 2024 and further accelerate to 3.5% in 2025.
Earlier, BMG reported that industrial production in Armenia reached 461 billion drams (over $1.1 billion) in January-February 2024, which is 28.9% higher than the same period in 2023.
