World Bank predicts slower growth for Armenian economy

According to Armenian media reports, the World Bank has revised Armenia's economic growth forecast for 2024, raising it from 4.7 per cent to 5.5 per cent. This update is reflected in the bank's latest global economic forecast for June, an improvement from the January forecast.

Despite this upward revision, Armenia's economic growth, similar to neighbouring Georgia, is anticipated to decelerate following rapid expansions in 2022 and 2023, which saw growth rates of 12.6 per cent and 8.7 per cent respectively. Looking ahead to 2025, growth is projected to be 4.9 per cent.

Key risks to economic growth in the Eastern Europe and Central Asia region include the ongoing conflict in Ukraine, associated sanctions, and trade restrictions. Additionally, slower economic growth in China is affecting the area, as reduced Chinese demand for resources, including copper concentrate—Armenia's main export commodity—is impacting economic performance.