YEREVAN, July 17. /ARKA/. Economic activity in Armenia increased by 8% (year-on-year) in the first five months of 2026, exceeding the projected figures. This is stated in the World Bank's report 'Armenia Monthly Economic Update – July 2026'.
"The sharp increase in economic activity in Armenia in May by 11.7% (y/y) compared to 7.1% (y/y) in April was due to an increase in the volume of non-tradable services (by 14.7%), particularly activities related to tourism, the hospitality sector, transport, and IT," the study says.
WB analysts, citing preliminary data, note that the number of tourist visits to Armenia in the first half of 2026 increased by 14.8%, exceeding 1 million people, 40% of whom came from Russia.
"The services sector may have also supported high activity ahead of the June parliamentary elections," the study notes.
Construction and mining industries continued to demonstrate double-digit growth rates of 27.1% and 21.6%, respectively. The mining industry continued to show positive dynamics due to the recovery that began at the end of 2025 after a downturn, as well as high copper prices.
The manufacturing sector grew by 7.4% due to increased production volumes of food and beverages, which, along with cigarettes, accounted for 60% of the total production in this sector.
"Overall, in the first five months of 2026, economic activity grew by 8% (year-on-year), exceeding projected figures," the report states.
Figures and Forecasts for Armenia's Economy
The state budget for 2026 anticipates an economic growth of 5.4%. In the first quarter of this year, Armenia's GDP, according to preliminary statistical data, recorded a growth of 4% compared to January-March 2025.
According to the Central Bank's monetary policy report for the second quarter of this year, the GDP growth of Armenia is expected to be between 4.5-4.1% depending on the scenario (A-B) by the end of 2026, 4.7-3.7% in 2027, and 5-6.2% in 2028.
Growth forecasts for Armenia's economy from international financial institutions for 2026 include: WB – 5.3%; IMF – 5.25%; ADB – 5.5%; EBRD – 5.5%; EAEU – 6%; S&P Global Ratings – 5.3%; Fitch Ratings – 5.2%.
