Economic relations between Georgia and Armenia have weakened in 2025, marked by declining trade, remittances, and foreign direct investment (FDI), despite a slight recovery in tourism.
In January–May 2025, trade turnover between the two countries dropped by 6.4% year-on-year to $280.3 million. This marks the second consecutive year of decline. The downturn was largely driven by an 11.9% decrease in exports from Georgia to Armenia, mainly due to a sharp drop in the re-export of passenger cars, which typically top Georgia’s export list.
Top Georgian exports to Armenia included:
- Cars – $20.4M
- Ethyl alcohol – $15.3M
- Oil products – $9.6M
- Excavation machinery – $7.7M
- Sweetened mineral water – $4.8M
Meanwhile, imports from Armenia increased by 10.3%, totaling $81.9 million. Key imports were:
- Copper ores – $20.9M
- Cigarettes – $14.8M
- Glass packaging – $11M
- Electricity – $4.3M
Despite the slowdown, Georgia continues to maintain a positive trade balance with Armenia.
FDI from Armenia into Georgia fell in Q1 2025 to $5.3 million, compared to $6.9 million in the same period of 2024. Although 2024 saw a record high of $22.5 million in Armenian investments, 2025 data suggests a cooling interest.
Money transfers also declined. In H1 2025:
- From Armenia to Georgia: $5.79 million (↓1.3%)
- From Georgia to Armenia: $4.6 million (↓12.3%)
Armenia remains Georgia’s third-largest source of international visitors after Russia and Turkey. In 1H2025, 390,788 visits were recorded, up 0.8% from the previous year. However, annual visits (948,299 in 2024) still lag behind pre-pandemic levels (1.36 million in 2019).
Private sector voices in Armenia have raised concerns over increased customs delays and inspections on Georgian borders. First reported in relation to Armenian cognac exports in spring, similar issues recently affected liquefied gas imports. While Georgia’s Revenue Service insists that procedures remain standard, Armenian exporters continue to report logistical barriers hampering business operations.
Although tourism shows slight signs of recovery, overall economic ties between Georgia and Armenia are weakening in 2025. Persistent border issues, reduced trade volumes, and a dip in investment and remittances point to growing strain in bilateral economic relations, demanding closer diplomatic and logistical coordination.
