World Bank Forecasts 5.5% Economic Growth for Armenia in 2024

The World Bank has released its latest Europe and Central Asia Economic Update for Fall 2024, presenting an optimistic outlook for Armenia’s economy. According to the report, Armenia’s economy is expected to grow by 5.5% in 2024, 5% in 2025, and 4.6% in 2026.

These figures reflect a slight improvement compared to the previous forecast in June, which projected growth rates of 5.5%, 4.9%, and 4.5%, respectively. Although the growth rate is expected to slow from 8.3% in 2023 to 5.5% in 2024, Armenia’s economy is projected to expand significantly above its potential level.

The report highlights that the South Caucasus, in general, is showing the fastest growth rates among all subregions in Europe and Central Asia, with a forecasted growth of 4.6% in 2024. This is 1.1 percentage points higher than the June forecast.

The World Bank attributes Armenia’s economic growth to several factors, including household consumption, investments, and government spending. However, experts also point out that the expected slowdown in growth is partially due to the normalization of migration flows, tourist arrivals, and remittances from the Russian Federation.

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