Armenia`s GDP increased by 5.2%  in Q1 2025, reaching $5.4 billion

ArmInfo.  In Q1 2025, Armenia's GDP amounted to 2.118 trillion drams ($5.4 billion) in current prices. According to the RA Statistical Committee, annual GDP growth slowed from 9.2% to 5.2%. The GDP deflator index increased to 102.9% (up  from 100.8% in Q1 2024).  Specifically, in the GDP structure, the construction sector showed an acceleration of annual growth - from 12.4% to 14%, the agricultural sector - from 4.4% to 8.1%, while the trade sector experienced a slowdown in growth - from 25.1% to 5.6% and the energy complex - from 10.5% to 9.7%. The financial sector saw a high growth in the volume of services provided - by 27.5% (compared to 17.2% growth a year ago), and the information and communications  sector grew by 16.2% (compared to a 3.2% decline a year ago). 

In the industrial sector, the mining industry continued to decline  with rates accelerating from 5.7% to 10.5%, while the dynamics of the manufacturing industry sharply worsened from 31.1% growth to a 21.1% decline. GDP per capita increased year-on-year (from Q1 2024 to Q1 2025) from 653,721 drams ($1,621 thousand) to 687,853 drams ($1,740 thousand). This increase occurred amidst a slowdown in Armenia's annual population growth, which decreased from 3.4% (98.2 thousand people) to 1.4% (41.4 thousand people), going from 3.040 million  people to 3.081 million people.  Exports decreased by 53.4%  year-on-year and imports by 45.2%. A year ago there was a high growth in both exports doubling, and imports increasing by 78.1%.

It should be noted that the IMF and the WB predict a further slowdown in Armenia's GDP growth rates in 2025 to 4.5% and 4%, respectively. The Central Bank predicts either an acceleration of GDP growth to 7% or a slowdown to 4.5% for 2025, depending on the inflation trajectory. According to Armenia's Statistical Committee, after accelerating in 2022 from 5.8% to 12.6%, Armenia's GDP growth began to slow down in 2023 to 8.3% and then in 2024 to 5.9%, amounting to  10.2 trillion drams (about $26 billion) in absolute terms. The GDP deflator index also began to decline to 103.1% in 2023 and to 101.4% in 2024 after growing in 2022 from 106.9% to 108%. The forecasts of the Central Bank, the IMF and the World Bank regarding exports and imports for 2025 differ greatly. According to the Central Bank's expectations, after almost equal growth of exports and imports in 2024 by 35.6-31.4%, in 2025 foreign trade turnover will be in decline: accordingly, the volume of exports will decrease by 19.8-24%  and imports by 19.7-22.8%. The IMF also predicts a decline in both exports and imports for Armenia in 2025, but by a more modest 10.4% and 5.4%, respectively. The WB, unlike the Central Bank and the IMF, predicts only a slowdown in the growth rates of both exports and imports for Armenia in 2025 to 5.6% and 7%, respectively.