MSMEs share in Armenia`s GDP increased from 31% to 34% in one year 

ArmInfo.  The share of MSMEs (micro, small, and medium enterprises) in Armenia's GDP increased from 31% to 34% in 2024. However, excluding microenterprises, SMEs  account for only 19% of GDP (compared to 18% in 2023). This is  evidenced by the December report of the RA Statistical Committee  "Small and Medium Enterprises of Armenia."

Specifically, MSMEs in the trade sector accounted for 12% of GDP,  services - 11% of GDP, the industrial sector (including energy) - 6%,  and construction - 5%.

The total volume of MSMEs in 2024 increased by 17% to 3.5 trillion  drams ($9 billion), with GDP growing by 5.9% to 10.2 trillion drams  ($26 billion). In particular, the volume of microenterprises exceeded  1.5 trillion drams (an annual growth of 22.5%), small enterprises -  915.1 billion drams (an annual growth of 16.6%), and medium-sized  enterprises - 1.1 trillion drams (an annual growth of 9.6%).  Excluding microenterprises, the volume of SMEs grew by 13% over the  year. The dominant volume among micro, small, and medium-sized  enterprises (MSMEs) is generated by those operating in the trade  sector, with over 1.2 trillion drams (over 35% of the total MSME  volume) and services, with 1.14 trillion drams (approximately 33% of  the total MSME volume). These are followed by representatives of the  industrial sector (including energy), with 590.3 billion drams (17%  of the total MSME volume), and construction, with 532.6 billion drams  (over 15% of the total MSME volume).

At the end of 2024, there were 114,506 MSMEs (micro, small, and  medium-sized enterprises), compared to 109,430 in 2023, representing  an 5% increase over the year. Of these, there were 108,467  microenterprises (an annual increase of 4.5%), 5,204 small  enterprises (an annual increase of 7.5%), and 835 medium-sized  enterprises (an annual increase of 2.2%).

By sector, MSMEs are concentrated as follows: almost 50% of  microenterprises are in the trade sector (53,764 thousand) and 21%  are in manufacturing and IT (a total of 22,380 thousand). The  majority of small enterprises are in the trade sector (over 26% or  1,373 thousand) and slightly fewer are in manufacturing  (approximately 18% or 927). Medium-sized enterprises are most  numerous in manufacturing (approximately 27% or 225) and a total of  32% (or 264) are in the trade sector and IT.

The same report also provides statistics on large enterprises,  according to which there are 171 of them (annual growth of 6.2%), and  the volume they generate exceeds 1.3 trillion drams ($3.4 billion,  with an annual growth of 8.2%), or over 13% of GDP. Most large  enterprises operate in the manufacturing industry (55), trade (37),  and IT (21). In terms of volume generated by large enterprises, the  leading sectors are the industrial sector, with 872.3 billion drams  (annual growth of 24%), and the services sector, with 309.7 billion  drams (annual decline of 4.2%). These are followed by the  construction sector, with 75.5 billion drams (annual growth of  12.5%), and the trade sector, with 84.9 billion drams (annual decline  of 42%).

In the GDP structure in 2024, the highest growth was demonstrated by  the trade, construction, and services sectors - by 17%, 14.5%, and  10.6%, respectively. Against this backdrop, growth rates in the  energy complex, industrial sector, and agricultural sector were more  modest - 6.5%, 4.7%, and 1.6%. In terms of volume, the trade sector  holds the lead with 6.4 trillion drams, followed by the services  sector with 3.5 trillion drams, the industrial sector with 2.99  trillion drams, the agricultural sector with 958.8 billion drams, and  construction with 709.5 billion drams. (The dram exchange rate for  January-September 2024 was 392.73 drams/$1.)