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World Bank Lowers Armenia's Economic Growth Forecast for 2026 from 5.9% to 5.3% Due to Middle East Conflict

News | 2026/07/29 11:47

World Bank Lowers Armenia's Economic Growth Forecast for 2026 from 5.9% to 5.3% Due to Middle East Conflict

Armenia's economy is projected to grow by 5.3% in 2026 according to the World Bank

The World Bank forecasts that Armenia's economy will grow by 5.3% in 2026 and by 5.1% in 2027, according to senior economist Armine Manukyan:

“Before the escalation of the situation in the Middle East, our growth forecast for Armenia's economy in 2026 was 5.9%. However, considering the ongoing uncertainty and possible moderate impact of the conflict, it has been revised down to 5.3%,” Manukyan said:

Main Growth Drivers

Manukyan noted that the main sector driving Armenia's economy in 2026-2027 will remain the services sector. The most significant contributions come from financial and insurance services, information technology, and professional activities:

“The structure of Armenia's economy is such that consumption traditionally plays a very large role. At the same time, the contribution of investments is beginning to increase, which is also becoming an important factor for economic growth,” she said:

Figures and Forecasts for Armenia's Economy

In the state budget for 2026, economic growth in Armenia is projected at 5.4%. According to the National Statistical Committee of the Republic, the economic activity indicator for Armenia registered a growth of 7.9% in January-June 2026 compared to the same period in 2025:

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