EBRD forecasts 5% economic growth for Armenia in 2025, 4.5% in 2026

The European Bank for Reconstruction and Development (EBRD) projects Armenia’s economy to grow by 5% in 2025 and by 4.5% in 2026. EBRD analysts note that the country’s economic growth has slowed from 5.9% in 2024 to 5.5% year-on-year in the first half of 2025.

Furthermore, the EBRD believes that a peace agreement between Armenia and Azerbaijan could reduce geopolitical risks, pave the way for increased private investment, and boost tourism. A potential normalization of relations with Turkey could significantly enhance Armenia’s role in East-West transit and regional logistics.

At the same time, the bank highlights several risks, including a growing current account deficit, reliance on remittances, and vulnerability to regional crises.