Economy of Armenia

GDP

2024: GDP growth of 8%

At the end of January 2025, the Statistical Committee of Armenia (Armstat) reported that the country's economy in 2024 showed an increase of 8%. The main factor in this rise was the increase in trade with Russia.

The Deputy Prime Minister Russia Alexey Overchuk said that in the first ten months of 2024, the volume of bilateral trade between the countries almost doubled and amounted to $10.2 billion. dollars Trade volume was even higher at nearly $10.9 billion, up 91% from the same period in 2023, Armstat said.

Yerevan

Russia continues to be one of the key investors in the Armenian economy. Investments in industrial projects in the republic reached $3.4 billion in 2024. More than 40 large Russian companies operate in Armenia, and many of them are the largest taxpayers in the country, having a significant impact on the local budget.

In addition, according to Armstat, in 2024 the volume of industrial production in Armenia increased by 4.7%, amounting to 2.998 trillion drams, and the volume of agricultural production almost did not change, having increased by only 0.1% and amounted to 958.804 billion drams. In the construction industry, there is a significant growth of 14.5%, the volume amounted to 709.465 billion drams, and in trade growth amounted to 17%, reaching 6.378 trillion drams. The service sector also showed positive dynamics, having increased by 10.6%, and amounted to 3.467 trillion drams.

In the state budget of Armenia for 2024, GDP growth was laid at the level of 7%, and inflation was expected at the level of 4%, with the possibility of deviation within 1.5 percentage points. In the first half of the year, the rate of economic activity exceeded 10%, but in the second half there was a slowdown in growth. This was due to a slowdown in high growth rates in industry, which was mainly due to a decrease in gold processing volumes.

Still, activity in construction and trade remains strong. The construction industry is supported by tax breaks for mortgage borrowers, which contributes to the construction of new residential facilities. Trade is also stimulated by consumer loans, which are actively used to buy housing. An additional growth factor is the presence of a large number of relocants who continue to live in Armenia and have a positive impact on demand in the field of trade and services.^[1]

2023: GDP growth of 8.7%. Fastest Growing Industry - ICT

in GDP Armenia 2023, it grew by 8.7% compared to 2022, and the fastest growing industry in the country was the information and communication technologies (ICT) market. This is evidenced by the data of the Statistical Committee of the Republic of Armenia, published in February 2024.

According to the agency "Prime" with reference to the materials of the department, the gross domestic product of Armenia in current prices at the end of 2023 reached 9.5 trillion drams (about $23.5 billion). The volume of the ICT industry during this time reached 524.4 billion drams ($1.3 billion), which is 36.5% more than a year ago. Wholesale and retail trade in the country showed an increase of 24.8% with a volume of 1.2 trillion drams ($3 billion). In the manufacturing industry, an increase of 3.9% was recorded (up to 1.05 trillion drams/$ 2.6 billion), in agriculture - by 0.2% (up to 800 billion drams/$ 2 billion), in construction - by 15.7% (up to 653.5 billion drams/$ 1.6 billion).

Armenia's GDP in 2023 grew by 8.7%

According to the results of 2023, the volumes of the financial and insurance sector in Armenia amounted to 701.22 billion drams ($1.7 billion). At the same time, in this area, according to statistics, a decline of 8% was recorded.

As for the structure of GDP, trade (wholesale and retail) in 2023 occupied 12.7% of the Armenian economy, manufacturing - 11.1%, agriculture - 8.4%, real estate - 8.3%, financial sector - 7.4%, construction (not to be confused with the sale of real estate) - 6.9%. The share of the IT and telecommunications sector was 5.5%, healthcare - 5.4%, transport industry - 3.9%, extractive industry (including both mines and sand and stone quarries) - 2.9%, power - 2.6%.

The indicator of economic activity in Armenia for 2023 increased by 9.4%, but it is somewhat different from GDP, since it does not include indirect taxes (VAT and excise tax), as well as services of the financial and banking sector.^[2]

2022: GDP growth forecast by 12.9% thanks to the influx of Russians during the conflict in Ukraine

Armenia's economy will grow by 13% of GDP this year thanks to a large influx of Russians, said local Central Bank Chairman Martin Galstyan in October 2022. According to preliminary data, Armenia's GDP has already grown by 13% in the second quarter of 2022. At the end of the year, growth will be 12.9%, and inflation - about 10%, according to the September forecast of the Central Bank of the republic.

2020

Trade with Russia accounts for 17% of Armenia's GDP

7.5% drop

GDP Armenia at the end of 2020, it decreased by 7.5%, as evidenced by the data of the Statistical Committee of the Republic. The Armenian Central Bank estimated the fall of the economy at 7.8%.

Before the start of the COVID-19 pandemic, the Armenian government expected an increase in the country's GDP by 4.9% by the end of 2020 after an increase of 7.8% in 2019. However, the spread of the coronavirus led to a noticeable deterioration in the economic situation, as a result of which the GDP forecast was repeatedly revised in the negative direction. The international rating agency Fitch Ratings predicted that the shock from the coronavirus will slow down Armenia's GDP growth from 7.6% in 2019 to 0.5% in 2020.

For 2020, GDP growth was noted only in the first quarter, when it amounted to 3.9%, for the other three quarters of 2020, GDP showed a negative indicator. So, in the second quarter, the decline amounted to 13.7%, in the third quarter GDP decreased by 9%, and in the fourth quarter - by 8.8%. In the nominal volume of GDP of Armenia at the end of 2020 amounted to 6.18 trillion drams. At the same time, GDP per capita in Armenia at the end of 2020 amounted to about $4269.

According to the National Statistics Committee, the indicator of the economic activity of Armenia, according to preliminary data, in January-December 2020 registered a decline of 7.5% compared to the same period in 2019. At the same time, in December 2020, compared to November 2020, the figure increased by 27.7%, although an annual decline of 8.8% was registered.

According to the calculations of the Statistical Committee of Armenia, Armenia's foreign trade turnover in 2020 amounted to $7.1 billion, falling by 13.2% compared to the previous year. Exports decreased by 3.9% to $2.55 billion, imports - by 17.7% to $4.56 billion

The volume of industrial production in Armenia at the end of 2020 decreased by 0.9% to 2.7 trillion drams. Agricultural production increased by 1.4% to 819.31 billion drams.

In the construction sector, a decline of 9.5% to 413.83 billion drams was recorded, in the trade sector - by 14% to 2.86 trillion drams, in the services sector - by 14.7% to 1.71 trillion drams.^[3]

2019

In 2019, incoming foreign remittances (mainly from labor migrants and diaspora representatives who send money to their families at home) account for 12% GDP Armenia of and 14.5% of GDP. Georgia For the most part, these are translations from. Russia

Financial system

External public debt

Key rate

Banks

Banks of Armenia

Main article: Banks of Armenia

Remittances

2024: Russians accounted for 66% of remittances to Armenia

The net inflow of cross-border remittances to individuals through the banking system of Armenia in 2024 amounted to $1.51 billion, down from $1.65 billion in 2023. At the same time, the Russians accounted for about two-thirds of transactions. This is evidenced by the data of the Central Bank of the republic, which were published in February 2025.

The total volume of cross-border transfers to Armenia in 2024 reached $5.83 billion, which is 2.5% higher than the previous year's figure of $5.69 billion. According to analysts of the Central Bank, the leaders in terms of the volume of transfers were Russia with $3.82 billion (65.5% of the total) and the United States with $690.6 million, maintaining their positions compared to 2023, when the figures were $3.94 billion and $663.2 million, respectively.

Yerevan

The outflow of funds from Armenia abroad through the banking system in 2024 increased to $4.33 billion from $4.04 billion in 2023. According to the Central Bank of the country, the main directions of transfers from Armenia, as a year earlier, were UAE ($880.3 million) and Russia ($688.4 million).

The materials of the Ministry of Finance of Armenia say that in 2024 there was a decrease in the net inflow of money transfers to the country by 34.8%. In particular, analysts from the ministry point to a decrease in inflows from the Russian Federation by 52.3% and from other countries by 3.5%.

As Interfax writes with reference to the representative of the Central Bank Hayk Avetisyan, the volume of money transfers made from Russia to Armenia decreased in 2024.

Шаблон:Quote 'This may be partially due to the activities of the settlement and payment system, but there are also larger and more effective factors, including geopolitical and economic ones, "explained Martin Galstyan. According to him, due to the reduction of income inequality, many Armenians are returning from Russia to work in their native country. Armenia in 2022 was one of the most popular destinations for the relocation of Russians.

2022: Transfer of record $3.6 billion from Russia to Armenia

In 2022, individuals sent record volumes of remittances from Russia to neighboring countries amid the conflict in Ukraine.

About 108-110 thousand Russians arrived in Armenia in 2022, Minister of Economy of the country Vagan Kerobyan reported in March 2023.

Following the results of 11 months of 2022, the Central Bank of Armenia reported that the volume of transfers quadrupled compared to 2021 - to $3.1 billion. This is a record indicator of available statistics.

In December 2022, $422.9 million was transferred from Russia to Armenia, which is five times more than in the same period of the previous year, according to statistics from the Central Bank of Armenia. In just a year, a little less than $3.6 billion was received in this direction. For comparison, in 2021, only $865.6 million was received from Russia to the republic.

Remittances to Armenia from January to September 2022 increased by 155% compared to last year to $1.7 billion, Prime reports, citing Armen Nurbekyan, director of the macroeconomic department of the Central Bank of the republic.

The "very large figure" is the result of an increase in remittances from Russia, he stated. And he noted that such an influx is "almost entirely due to the increase" in the number of transfers from Russians. Nurbekyan also pointed out that this indicator directly affects the formed exchange rate.

Power

2025:1 active nuclear reactor

The number of operating nuclear reactors in countries around the world according to Bloomberg as of February 2025:

• UNITED STATES: 94
• China: 57
• France: 57
• Russia: 36
• South Korea: 26
• India: 20
• Canada: 17
• Ukraine: 15
• Japan: 14
• United Kingdom: 9
• Spain: 7
• Czech Republic: 6
• Pakistan: 6
• Sweden: 6
• Belgium: 5
• Finland: 5
• Slovakia: 5
• Hungary: 4
• Switzerland: 4
• UAE: 4
• Argentina: 3
• Belarus: 2
• Brazil: 2
• Bulgaria: 2
• Mexico: 2
• Romania: 2
• South Africa: 2
• Armenia: 1
• Iran: 1
• Netherlands: 1
• Slovenia: 1

2024

85% of gas comes from Russia and 15% from Iran

In 2024, the Armenian gas sector remains a vertically integrated monopoly, the operator and owner of which is Gazprom-Armenia, which is fully owned by the Russian Gazprom. However, according to the Energy Strategy, the Armenian government intends to revise all legislation in the gas sector in 2024 and begin to develop a new Gas Law.

Armenia, along with other members EEU , plans to launch a common EAEU gas market in 2025. The agreement signed by the EAEU members in 2019 obliges Armenia to allow third parties to access the gas market and carry out reforms aimed at facilitating cross-border gas trade.

Armenia receives about 85% of gas from Russia through pipelines passing through Georgia (one of the sections was transferred to Azerbaijan in the spring of 2024).

The remainder of the gas is imported from Iran. But you need to understand that Iranian gas is used only for the production of electricity under the formula "gas in exchange for electricity." This works as follows: the Armenian side receives from Iran 1 cubic meter of gas in return for the obligation to supply back 3 kWh of electricity. The EPC and Hrazdan TPP participating in the program generate not 3, but 4 - 4.5 kWh of electricity from one cubic meter of gas. Thus, approximately 1-1.5 kWh of electricity remains in Armenia. This is also beneficial for the Iranian side, since it eliminates the need to build TPPs in the northern provinces.

USAID pushes through project to cut off Armenia from gas supplies from Russia

At the end of March 2024, the US agency USAID held a regular meeting on the topic of "energy security" of Armenia.

The task of the program is to reduce "Armenia's dependence on Russian gas supplies." Read more here

Rosatom is working to extend the work of Metsamor NPP

The surviving second unit, built during the USSR Metsamor NPP, covers almost the entire base load (33%) in the power system of Armenia for 2024.

The VVER-440 project V-270 old and unique due to the features of the site.

As of March 2024, Rosatom is already engaged in work to extend the operation of the Metsamor nuclear power plant until 2036.

2023: Armenian Nuclear Power Plant Modernization Plan

In June 2023, there was a discussion about the fate of the Armenian nuclear power plant and the need to find an alternative to it. Doctor of Technical Sciences Vahram Petrosyan said that by the decision of the government, the functioning will be extended until 2036 after the modernization.

However, the contractor has not yet been selected. The Armenian side is considering various options for work at nuclear power plants and future projects, ranging from the Russian Rosatom to American and French companies. One of the requirements is to attract local specialists.

Armenia CB gives priority to low-capacity power units, which are not on the market at this time. The economic downturn due to the lack of large industrial consumers, as well as practically non-working railway transport, makes the use of powerful reactors ineffective.

Russia massively produces new power units for 1200 MW, which is too much for the needs of Armenia. Electricity from nuclear power plants of this capacity outside the morning and evening maximums will simply have nowhere to go, wrote the Rybar channel.

The country's energy system is balanced by about 400-440 MW of nuclear power generation, which is the difficulty. Nobody is building reactors at such a capacity now. There are promising projects of commercial stationary low-power reactors both in Russia and in France and the United States, but so far they are only on paper.

But this does not prevent the United States from promoting contracts for the installation and supply of not yet existing modular low-power nuclear power plants.

2020: Low per capita energy consumption

and

1995: The second unit of the nuclear power plant resumed operation

The second unit of the nuclear power plant resumed work in 1995 and continues to work in 2024.

1988: Shutdown of the Armenian NPP and damage to the first unit

The Metsamor nuclear power plant was originally built according to a special V-270 project with increased seismic resistance. The design withstood the devastating 1988 Spitak earthquake, confirming the correctness of calculations and embedded solutions. But in the wake of radiophobia after the Chernobyl accident, the authorities reinsured and stopped the nuclear power plant.

It was not expected to resume operation and damaged the first unit, cutting out parts of the bodies of the steam generators for research.

Foreign trade

Trade between Russia and Armenia

Main article: Trade between Russia and Armenia

Zangezur corridor

Main article: Zangezur corridor

2024

Sharp rise in imports from China

Total exports China to, and Armenia Azerbaijan Georgia reached $1.1 billion in the first quarter of 2024 compared to $0.4 billion in the first quarter of 2019. This 150% growth is clearly not to meet any boom in domestic demand in the Caucasus. All these goods are sent to, Russia said chief economist IMF Robin Brooks in May 2024.

Multiple growth in exports to the UAE due to restrictions on Russian trade

2022

The rise of trade with the United States and the EU due to bypassing sanctions against the Russian Federation

The rapid growth of trade flows USA EU with neighbors Russia may be a sign that sanctions can be avoided, the European Bank for Reconstruction and Development believes.

German exports to Russia from May to July 2022 fell 38% compared to the average for the same period in 2017-2019. However, it almost doubled to Armenia and more than tripled to Kyrgyzstan - a trend also seen in trade flows to the Caucasus and Central Asia from the US, Britain and EU countries.

Internet trade

• Internet trading (Armenian market)

IT industry

• E-Government of Armenia
• Armenia IT Market

R&D

2020: R&D costs - $59M

Communication

Main article: Communication (Armenian market)

Tourism

2023: Tourist flow from Russia to Armenia increased by 33% over the year

At the end of 2023, the tourist flow from Russia to Armenia increased by 33%. Russian tourists have made more than 1 million trips to this country. Such figures are given in the materials of the Ministry of Economic Development of Russia, with which TAdviser got acquainted in early October 2024.

As the Association of Tour Operators notes, in 2023 Armenia entered the top five countries - leaders in the number of air passengers departing from Russia (for any purpose). According to tour operators, in the structure of Russians' trips to Armenia, about 60% fall on diaspora trips, over 20% - on transit. Another 10-13% is provided by independent travelers, including the business tourism segment. Clients of travel companies (organized tourism) account for 5-7%.

Yerevan

In 2023, the average tour check Armenia in was for different tour operators from 75 thousand to 120 thousand rubles for two. Coral Travel The average cost of living hotels Armenia in 2023 was in the region of 4000 rubles per room per day. Among various tour operators, the demand for travel of Russians Armenia in 2023 rose from 20% to 70%. At the same time PEGAS Touristik , two-time growth was recorded. In part, such a significant increase in demand is due to the low base in previous years.

In turn, Armenian tourists in 2023 made Russia 366 thousand trips. This is 34.6% more than the previous year. At the same time, the head of the Tourism Committee Armenia Sisian Poghosyan said that according to the results of 2023, a total of 2.3 million tourists (from all states) visited the country. This is about 20% more compared to 2019 and 39% more than in 2022. According to her, 50% of tourists arrived from Russia. Georgia (11%) and (6 Iran %) finished second and third, respectively. Next come with 3 United States of AmericaUSA % of tourists. ^[4]

2019: How much Armenia is dependent on tourism:% of the industry in GDP

2018

Salaries

2023: Minimum wage - $138

2017: Average monthly salary

Unemployment

2020: Unemployment rate - 22.3%

Alcohol market

Minimum age to purchase alcoholic beverages

Agriculture

2019: Low use of pesticides in agriculture

Consumption

Meat

2023: Beef is the most consumed type of meat

2019: Beef is the most consumed type of meat

History

2022: 1,200 Russian companies open offices in Armenia amid conflict in Ukraine

From the end of February to the end of June 2022, 1,200 companies from Russia were relocated to Armenia against the background of Russia's special operation in Ukraine and the subsequent sanctions of the United States and its satellite countries.

See also

• Internet trading (Armenian market)
• Armenia IT Market
• Government of Armenia

Notes