Economy of Armenia

GDP

2025: GDP growth of 7.2% to $30.27 billion

In 2025 GDP Armenia , it reached 11.32 trillion drams (about $30.27 billion at the exchange rate at the end of February 2026). This is 7.18% more compared to the previous year, as stated in the materials of the Statistical Committee of the Republic (Armstat), published on February 20, 2026.

The largest contribution to GDP growth was provided by trade and services (including the information and communications sector) - 4.27%. Approximately 1.48% fell on the construction sector, 0.64% - on industry (including power), 0.41% - on agriculture, forestry and fishing. The contribution of the main segments to Armenia's GDP structure is as follows:

• Mining, open pit development - 3%;
• Manufacturing - 11%;
• Provision of electricity, gas, steam and conditioned air - 2.3%;
• Water supply, sewerage, treatment, waste treatment and production of secondary raw materials - 0.3%;
• Construction - 6.6%;
• Wholesale and retail trade, repair of cars and motorcycles - 13.4%;
• Transportation and warehousing - 3.7%;
• Agriculture, forestry and fishing - 7.9%;
• Organization of accommodation and catering - 2.2%;
• Information and communication - 5.8%;
• Financial and insurance activities - 9.7%;
• Real estate transactions - 9.1%;
• Professional, scientific and technical activities - 1.8%;
• Administrative and auxiliary activities - 1%;
• Public administration and defense, compulsory social insurance - 3.8%;
• Education - 2.3%;
• Health and social services of the population - 4.7%;
• Arts, Entertainment and Recreation - 3.1%;
• Other services in the service sector - 0.7%.

According to Armstat, in total GDP, about 10.6% were taxes on products (minus subsidies). Another 89.4% is gross value added (in core prices).^[1]

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.^[2]

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.^[3]

7th in the world in terms of economic growth

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.^[4]

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

2025: Remittances from Russia to Armenia for the year decreased three times to $1.3 billion

Remittances from Russia to Armenia in 2025 tripled to $1.3 billion. For comparison: in 2024, the figure was measured at $3.82 billion. Such data in February 2026 leads RBC. The main reason for the reduction in remittances from Russia to Armenia in 2025 was a sharp tightening of compliance in Armenian banks due to the risk of secondary sanctions. In addition, the natural decline in the rush demand observed in 2022-2023, when many relocants opened accounts and transferred funds, also played a role.

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.

Taxes

2025: Top 10 companies by paid taxes in Armenia

At the end of 2025, the Mobile Center Art smartphone store chain became the largest taxpayer in Armenia. Payments to the budget amounted to about 77.9 billion drams or $205.5 million. The second place was taken by the tobacco factory "Grand Tobaco" with payments to the budget of about 66.1 billion drams or $174.4 million. Zangezur Copper-Molybdenum Plant closes the top three with payments of 52.2 billion drams or $137.7 million. The data in January 2025 was published by the State Revenue Committee.

The top ten companies in terms of paid taxes also included:

• Gas supply operator Gazprom Armenia (43.2 billion drams or $114 million)
• Ardshinbank (40.2 billion drams or $106 million)
• Ameriabank (29 billion drams or $76.5 million)
• IT-company Dijitain (26.6 billion drams or $70.2 million)
• International Masis Tabak (25.9 billion drams or $68.3 million)
• Petroleum products distributor CPS (24.8 billion or $65.4 million)
• Soft Construct (23.8 billion drams or $62.8 million).^[5]

Service market

2025: Service market growth in Armenia by 7% to $10.9 billion

According to the results of 2025, the volume of the service market in Armenia reached 4.09 trillion drams ($10.97 billion at the exchange rate on February 26, 2026). This is 17.9% more than in the previous year, when the figure was at the level of 3.47 trillion drams. Such data are contained in the materials of the Statistical Committee of the Republic (Armstat), which TAdviser got acquainted with at the end of February 2026.

The published report states that in 2025 the largest contribution to the total revenue of the service sector in Armenia was made by financial and insurance activities (32.6%), as well as information/communications (20.2%) and transport ( 11.2%). These three segments accounted for almost two-thirds of all cash receipts. In general, the structure of the service market of the republic is as follows:

The volume of the service market in Armenia grew by 7% over the year and reached $10.9 billion

• Accommodation organization - 1.7%;
• Catering organization - 7.3%;
• Culture, entertainment and recreation - 7.9%;
• Education - 2.2%;
• Health and social services of the population - 4.4%;
• Real estate transactions - 3.6%;
• Creation and broadcasting of radio and television programs - 0.3%;
• Telecommunications - 3.9%;
• Information technology - 15.5%;
• Ground transport - 3.9%;
• Air transport - 2.4%;
• Postal and courier transport - 0.5%;
• Administrative and auxiliary activities - 3.4%;
• Professional, scientific and technical activities - 4.7%;
• Activity of banks - 22.5%;
• Insurance - 1.3%;
• Other services in the service sector - 0.8.

In 2025, such areas as software development and related activities (plus 23.4% compared to 2024), software publication (2.3 times), social services (plus 15.6%), hospital activities (plus 12.7%), hotel services and other places of residence (plus 10.2%).^[6]

Industrial production

2025: Industrial production in Armenia increased by 7% over the year and reached $8.86 billion

At the end of 2025, the volume of industrial production in Armenia reached 3.33 trillion drams ($8.86 billion at the exchange rate as of February 25, 2026). This is about 7% more than in the previous year, when the indicator was at around 3.12 trillion drams. Such data are contained in the materials of the Statistical Committee of the Republic (Armstat), published on February 20, 2026.

The mining industry and the development of open pits in 2025 provided 514.69 billion drams (about $1.37 billion), which is 6.4% more than in the previous year. The contribution of the manufacturing industry amounted to 2.4 trillion drams ($6.4 billion) - plus 3.3% on an annualized basis. The supply of electricity, gas, steam and conditioned air accounted for 378.26 billion drams ($1.01 billion), which corresponds to an increase of 10.7% compared to 2024. Water supply, treatment, waste treatment and receipt of secondary raw materials brought 32.37 billion drams ($86.23 million) with an increase of 2.7% year-on-year.

Industrial production in Armenia increased by 7% over the year

In the total structure of industrial production in Armenia, manufacturing accounted for 72.2% in 2025. Mining and open pit development provided 15.4%, electricity, gas, steam and air-conditioned supply 11.4%. The contribution of water supply, treatment, waste treatment and production of secondary raw materials amounted to about 1%.

If we consider exclusively the manufacturing industry, the largest share is provided by the production of food, drinks and tobacco products, the metallurgical industry, the production of other non-metallic mineral products, the printing and reproduction of recorded materials, the production of clothing, as well as the production of rubber and plastic products, chemical products, etc.^[7]

Mining

2023: Armenian government receives 12.5% stake in Lydian Armenia, which owns the right to mine gold in Amulsar

After the resumption of negotiations in 2022, in 2023 the government Armenia received a 12.5% stake in Lydian Armenia.

2020: Start of Karabakh war halts Amulsar gold mining plan

US Ambassador to Armenia Richard Mills (2015-2018) linked the launch of production at the Amulsar gold mine with future American investments in the country, putting pressure on the authorities.

After the threats of Mills, Armenian Prime Minister Pashinyan begins to promote the project. In 2019, the ELARD examination ordered by the government recognized the presence of "managed" environmental risks. But the company did not conduct its research, relying on Lydian data.

Activists called Pashinyan's U-turn on the Amulsar issue "a betrayal of the revolution" and drew attention to his obvious disregard for the facts of harm to the project.

However, the beginning of the Karabakh war of 2020 again put the project on pause.

Despite the positive interpretations by the Pashinyan government of the ELARD examination, in 2020 representatives of the EBRD leave the project - the reputation of the project is finally called into question.

Under the threat of bankruptcy in 2020, Lydian underwent a restructuring - control was received by Orion Mine Finance (USA) and Osisko Gold Royalties (Canada), which specialize in high-risk projects at the stage of crisis and restart.

The Orion Mine Finance Foundation in 2023 was at the center of a scandal in Guinea, where 7.5 tons of bauxite and fuel were spilled, which led to major environmental damage. Local sources spoke of corruption and attempts to pressure officials.

The Canadian company Osisko Gold Royalties participated in gold mining in Argentina in the Famatina mountain range, which was stopped after mass protests in 2011 due to the risk of pollution of water sources. The project negatively affected the reputation of the company, which, among other things, compiled "black lists" against activists. The situation is very similar to Amulsar, except that the project was not stopped in Armenia.

2018: After revolution, PM Pashinyan promises to ban mining at Amulsar gold mine if it carries environmental risk

Activists and residents of Jermuk prevented preparatory work at the Amulsar gold mine, for which the British-American Lydian organized harassment of activists on social networks through fake accounts.

Tehmina Yenokyan, a resident of the village of Gndevaz near Jermuk, pointed out the coordinated persecution by the company's employees.

In 2018, Yenokyan joined a working group created by a government decree to study the consequences of the project. However, she faced surveillance and publication of details of her personal life on social networks.

A criminal case was opened in the Investigative Committee of Armenia on the fact of surveillance and persecution of Yenokyan and other social activists: the investigation revealed that people associated with Lydian were behind the actions. However, after the investigation, the UK suddenly closed the case, citing the social activities of activists and the law on freedom of information.

However, Lydian's retaliatory claims against activists are successful: Yenokyan was ordered to pay the company 1 million 200 thousand drams (about $3,100) for damage to business reputation.

Against the background of protests in Armenia, Lydian tried to find support in the Armenian diaspora of Britain and the United States, calling the mining project "salvation" for the country's economy.

However, even American scientists pointed to the danger of development, the company's lack of technology, experience and, most importantly, economic inexpediency at colossal risks.

During the Velvet Revolution period of 2018, protests against Amulsar's development peaked. In the wake of public support, new Prime Minister Nikol Pashinyan called the issue as important as the Karabakh conflict. He promised that if the project poses a threat to the country's water system, the development will be closed.

The project paused, but then something went wrong.

2012: British-American Lydian Armenia receives the right to develop the Amulsar gold mine. Residents opposed

The parent company of Lydian International was established in 2006 in the British offshore Jersey and entered the London Stock Exchange to attract investment. The company's control center is located in the United States.

In 2012, without an open competition, which allowed the law of Armenia, in the British-American Lydian Armenia, the "daughter" of Lydian International, received the right to develop the Amulsar gold mine.

Apparently, the key figure who connected British capital with Armenia is Armen Sargsyan, a former ambassador to Britain and adviser to transnational structures.

In 2013, Sargsyan became a member of the board of directors of Lydian and then accompanied Prince Charles to Yerevan - his visit was associated with lobbying for British interests during the protests against the mining project.

The decision to start development blew up Armenian society. After all, the field is located on a complex watershed near the resort of Jermuk and the sources on which the region depends.

The Amulsar gold ore deposit is located in Vayots-Dzor, in a zone of increased hydrogeological sensitivity.

The gold mining project involves open-pit mining and heap leaching, a method that requires handling toxic solutions.

Environmentalists from the beginning pointed to the risk of pollution of the Arpa and Vorotan rivers, as well as groundwater associated with the Jermuk mineral springs. Potentially, pollution can affect the system of Lake Sevan, which provides about 25% of drinking water for Armenia.

Since 2012, a long-term protest against the development of Amulsar has begun in Armenia.

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

2007: Uranium Mining Opportunities Study

Uranium exploration in Armenia was conducted in Soviet times, as well as Russian specialists in 2006 to consider the possibility of providing fuel to the Armenian nuclear power plant. According to estimates, up to 100 tons of uranium can lie in the country.

The matter did not reach the development of deposits due to the disproportionate risks and benefits. For a small mountainous country with high seismicity and a complex water system, uranium mining is extremely dangerous.

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

2025: Armenia ends year with $4.64 billion foreign trade deficit

The foreign trade turnover of Armenia in 2025 amounted to $21.4 billion. A decrease in the indicator by 29% was recorded relative to the level of 2024. The deficit of foreign trade of the republic amounted to $4.64 billion. Such data follow from the report of the Statistical Committee of Armenia, presented in February 2026.

According to the agency, the trend towards a decrease in trade turnover was outlined at the beginning of the year. In January 2025, the decline was 40% compared to January 2024, according to the results of the first quarter - 54.2%, in the first half of the year - 45%, and in three quarters - 39.3%.

Armenia's foreign trade deficit amounted to $4.64 billion at the end of the year

Russia remains Armenia's key trading partner. Trade between the countries in 2025 decreased by 38.3% and amounted to $7.66 billion. The second and third places in terms of trade were occupied by China ($2.64 billion, a decline of 6.5%) and the UAE ($2.13 billion, a decline of 60%).

Trade with the countries of the Eurasian Economic Union (EAEU) decreased by 36.9% (to $8.04 billion). Mutual trade with the CIS states decreased by 36.2% (to $8.24 billion). At the same time, an increase in indicators was recorded with Belarus ( 22.9%) and Kazakhstan ( 6.3%). Trade with the countries of the European Union, on the contrary, increased by 7.2% (to $2.5 billion). The most significant growth among EU states was demonstrated by France - 33%.

The volume of exports from Armenia in 2025 decreased by 36.1% (to $8.4 billion). In December, the figure rose 34.3% year-on-year and 13.9% by November. The largest decline in exports was recorded in the category of precious stones and metals - 64.5% (up to $2.85 billion). The supply of textiles (12.3%) and base metals (16.2%) also decreased.

Imports to Armenia in 2025 decreased by 23.6% (to $13.03 billion). In December, an increase of 30.4% was recorded by December 2024 and 6.5% by November 2025. The largest reduction in the import structure also fell on precious stones and metals (64.5%, to $2.62 billion).^[8]

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.

Due to US and EU sanctions against Russian diamonds, Armenia, as a member of the EAEU, was used as a transit point for re-export, and a significant part of the stones went to the UAE. This was an important export item for Armenia: in 2022, diamonds amounted to about $800 million and about 5.7% of the country's foreign trade.

However, the Russian Federation in 2024 blocked direct supplies of diamonds to the country.

2018: Clothing exports - $217 million

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)

Construction

2025: Construction volume growth by 20.2% to $2.15 billion

According to the results of 2025, the volume of construction in Armenia increased to 810.68 billion drams (about $2.15 billion). The figure is 20.2% more than the data for 2024. This is evidenced by the data of the Statistical Committee of Armenia, published in February 2026. Construction became one of the leading industries in 2025.^[9]

Tourism

2025: More than 700 thousand tourists from Russia in 8 months

Tourism in Armenia accounts for 14% of GDP, and the government relies on the development of the industry.

From January to August 2025, more than 700 thousand citizens of the Russian Federation visited the country - almost a third of the total flow. By the end of the year, a million Russians are expected, which, with a population of almost 3 million, turns tourism into one of the key drivers of the economy.

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. ^[10]

2019

Revenues of international tourism - 27.5% of the total export of goods and services

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

2025: Cognac production in Armenia for the year decreased by 27.4% to 14.4 million liters. Largest producers

In 2025, Armenia produced 14.4 million liters of cognac - 27.4% less than in 2024. This is evidenced by the data of the Statistical Committee of Armenia, published on February 24, 2026.

As Finmarket reports with reference to the statistical department of the republic, along with cognac in 2025, the production of other alcoholic beverages significantly decreased: wine - up to 7.69 million liters (23.4% decline), sparkling wines - up to 1.43 million liters (2.2% decline). At the same time, a number of segments showed growth: vodka - 1.61 million liters (plus 24.8%), whiskey - 5.29 million liters (plus 0.4%), beer - 32.14 million liters (plus 10.5%).

Cognac production in Armenia decreased by 27.4% over the year

Yerevan Brandy Factory (EKZ), which produces products under the Ararat brand, traditionally remains the largest producer of cognac in Armenia. According to Wikipedia, the plant is an unconditional leader in the industry: it concentrates about 60% of all Armenian stocks of cognac alcohols of various aging times, and its products are supplied to 25 countries of the world. Since 1998, the company has been part of the French concern Pernod Ricard, which acquired it for $30 million.

The Ararat line includes both ordinary cognacs - "3 stars," "5 stars" - and branded ones: "Akhtamar," "Nairi," "Dvin," "Ani," as well as exclusive brands available exclusively by special order: "Erebuni" (30 years old), "Cilikia" (30 years old), "Sparapet" (40 years old) and "Noah's Ark" (50 years old).

The largest producers of Armenian cognac also include:

• the Noah plant is one of the most famous in the domestic and Russian markets;
• Proshyansky Cognac Factory - produces brands of long-term aging, including Mane (8 years);
• Vedi Alko company - traces its history since 1956, owns the former Soviet Vedinsky and Getapsky factories, produces Shalaho cognac;
• Great Valley plant - produces the Great Valley, Arakhtan, Collector (18 years old), Arin Bird (25 years old), Tsar Tigran (30 years old) lines;
• "Ijewan" is one of the brands with the ability to visit production.^[11]

Agriculture

2025: The volume of agriculture in Armenia for the year increased by 5.6% to $2.8 billion

At the end of 2025, the volume of agricultural production in Armenia amounted to 1.06 trillion drams ($2.82 billion at the exchange rate as of February 24, 2026). This is 5.6% more compared to the previous year, as stated in the materials of the Statistical Committee of the Republic (Armstat), published on February 20, 2026.

In the general structure of agriculture in Armenia, crop production in 2025 accounted for 539.9 billion drams ($1.44 billion), which corresponds to an increase of 9.7% on an annualized basis. The contribution of animal husbandry amounted to 517.32 billion drams ($1.38 billion) - plus 1.8% in relation to 2024. The share of gross agricultural output by margins (administrative-territorial units) in 2025 is as follows:

• Aragatsotn - 9%;
• Ararat - 16.5%;
• Armavir - 24.8%;
• Gegharkunik - 10%;
• Lori - 8.6%;
• Kotike - 8.3%;
• Shirak - 9.4%;
• Syunik - 5.8%;
• Vayots Dzor - 1.8%;
• Tavush - 4.5%.

Armenia's agricultural sector grew by 5.6% over the year, reaching a volume of $2.8 billion

Agriculture is one of the key sectors of the Armenian economy. The largest share in the production of crop production is occupied by vegetables, fruits and berries, as well as grain crops. Wheat and barley are actively grown in the country. Among the main livestock products are eggs and meat - beef, pork, lamb, poultry. In agriculture, priorities are export diversification, commercialization and value added, technological modernization and innovation, human and rural development. The Ministry of Economy of the Republic of Armenia notes that the country has great potential for the development of organic agriculture: this is a purposeful system for strengthening agricultural production, which considers soil improvement as the main element in obtaining environmentally friendly food products.^[12]

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