YEREVAN, /ARKA/. By the end of 2025, Armenia’s economy is projected to grow by 5.2%, although it may decrease to 4.9% in 2026, as noted by World Bank Senior Economist Vicky Chemutai in response to an inquiry from ARKA. “Consequently, we anticipate a gradual ‘cooling’ of growth to 4.7% in 2027,” she informed reporters during the unveiling of the World Bank’s “Country Economic News” report on Armenia. Chemutai explained that the slowdown in Armenia’s economic growth is attributed to diminishing growth factors, recalling that real GDP growth was 12.6% in 2022, 8.3% in 2023, 5.9% in 2024, and 5.2% in the first half of 2025. Discussing the elements contributing to the slowdown in growth, the senior economist from the WB stated that in prior years, private consumption was the primary driver of Armenia’s economic expansion. “In the first half of this year, private consumption played a significant role in achieving double-digit growth, and investment also made a notable contribution. However, the decline in growth is largely due to a substantial drop in exports: during the first half of the year, net exports negatively impacted growth by 7.1 percentage points, with exports falling by 50% and imports decreasing by 30%,” she explained. Regarding the sectors expected to propel future growth, she highlighted that growth trends have been noted in services, ICT, and construction since the first half of the year. “We anticipate this trend to persist moving forward. It can be concluded that the service sector is the key driver of the Armenian economy,” she added. In response to ARKA’s inquiry about the recommendations the World Bank might offer to the Armenian authorities to meet the anticipated macroeconomic indicators, Chemutai indicated that these primarily include regulating competition restrictions, enhancing agricultural productivity—which has seen a decline in recent years—and diversifying markets and exports. The World Bank report indicates that inflation in Armenia is expected to decrease to 3% in 2025 and stabilize in the medium term. The Eurasian Development Bank (EDB) forecasts Armenia’s GDP growth at 5.5% in 2025. The World Bank expects it to grow by 5.2%, the IMF’s forecast is 5%, the EBRD’s is 5%, and the ADB’s is 6%. According to Fitch Ratings, Armenia’s economic growth in 2025 will be 4.9%, while the UN expects the Armenian economy to grow by 5.2% in 2025. The Armenian state budget for 2025 projects inflation at 3% (±1%).