The economic growth rate in May rose by 11.7 percent (y/y), bringing the growth rate from January to May to 8 percent (y/y).
● Inflation increased, reaching 5.1 percent in June compared to 4.2 percent in May, driven by rising food prices.
● In May, both exports and imports decreased, as the re-export of precious and semi-precious stones declined.
● A budget deficit was recorded in May, equivalent to 0.2 percent of the projected annual GDP, while remaining at 0.8 percent surplus level for the January-May period.
Economic activity sharply increased from 7.1 percent in April to 11.7 percent (y/y) in May: This sharp rise was driven by the growth of non-tradable services (14.7 percent, y/y), particularly in tourism-related activities, hospitality, transport, and IT sectors. According to preliminary data, tourist arrivals increased by 14.8 percent (y/y) in the first half of 2026, totaling over 1 million people, 40 percent of whom came from Russia.
Inflation remained high, rising to 5.1 percent in June (y/y): This followed a slowdown recorded in May (4.2 percent), thus bringing the average inflation for the first half of 2026 to 4.6 percent.
The trade balance deficit continued to worsen: In May, both exports and imports continued to decline, with the export picture being worse than that of imports (11.5 percent compared to 1.6 percent, y/y).
In May, there was a continued stable double-digit growth in net non-commercial transfers: Total net inflows increased by 30.2 percent (y/y) from the low base of 2025, with approximately 61 percent coming from Russia.
The dram continued to appreciate against the US dollar: In June, the Armenian dram appreciated by 0.1 percent (y/y) against the US dollar and by 1.4 percent (y/y) against the euro.
Financial system indicators remained stable in May: The capital adequacy ratio slightly decreased to 20.5 percent, while the non-performing loans ratio slightly increased to 1.4 percent.
