According to a report from the Asian Development Bank (ADB), growth in the Armenian economy is projected to moderate further to 5.7% in 2024, as external demand is expected to ease slightly. However, the report anticipates a subsequent acceleration to 6.0% in 2025, driven by the government's expanded investment programs focusing on infrastructure and housing.
The report indicates that both exports and imports will gradually moderate from their record highs in 2022 and 2023. Investment growth is forecasted to accelerate to 15.9% in 2024 and 18.5% in 2025, reflecting sustained increases in capital outlays for infrastructure, social investments, and private investment expansion.
Private consumption growth is expected to reach 4.0% in 2024 and 4.1% in 2025, constrained by moderate growth in remittances, which limits household income expansion and dampens demand.
Public consumption is projected to grow by 12.2% in 2024, driven by higher transfer payments, before moderating to 11.1% in 2025 as the increases taper off.
Despite the overall slower growth, the report highlights robust expansion in construction and consumer services. Services are forecasted to grow by 9.3% in 2024 and 9.4% in 2025, supported by increased tourism inflows and strong gains in finance, recreation, retail trade, transport, and information and communication sectors.
Earlier, BMG reported that in Armenia, economic activity for January-February 2024 compared to the same period last year increased by 13.6%. In February alone, this indicator grew by an additional 16.3%.
