World Bank forecasts moderate slowdown for Armenia`s economy through  2027

ArmInfo. In its latest Global Economic Prospects report released on January 13, the World Bank (WB) forecasts a gradual slowdown in Armenia's GDP growth in 2026-2027 to 4.9-4.7% from an estimated 5.2% in 2025 (after a slowdown in 2024 from 8.3% to 5.9% - Ed.).  At the same time, in the  countries neighboring Armenia, according to the new WB forecast, GDP growth in 2026-2027 will be lower in Azerbaijan at 1.8-1.7% (compared  to an estimated 1.9% in 2025), and higher in Georgia at 5.5-5% (compared to an estimated 7% in 2025).

 In Iran a deepening decline in GDP is expected in 2026 at 1.5% (from  an estimated minus 1.1% in 2025), followed by a weak 0.6% growth in  2027. In Turkey, according to the WB forecast, economic growth will  accelerate in 2026 to 3.7% (from an estimated 3.5% in 2025), with a  further increase in the rate to 4.4% in 2027. Overall, the World Bank  forecasts economic growth in the Europe and Central Asia region to  remain at 2.4% in 2026, with a  moderate acceleration to 2.7% in  2027.

Recall, in its November forecast, the World Bank predicted similar  expectations for Armenia's GDP growth: 5.2% in 2025, slowing to 4.9%  in 2026 and 4.7% in 2027. It should be noted that the Central Bank of  Armenia, in its December forecast, projected GDP growth of 6.3-4.1%  in 2026 and then 4.9-5.3% in 2027. In 2025, according to the Central  Bank's estimates, GDP growth will be 5.9% (similar to the actual 5.9%  growth in 2024). In its December forecast, the IMF updated its  expectations for Armenia's GDP growth in 2025 to 5%, accelerating to  5.5% in 2026. Armenia's draft state budget for 2025 projected GDP  growth of 5.1%, while the 2026 state budget projects 5.4% economic  growth.  According to the Statistical Committee of the Republic of  Armenia, Armenia's GDP growth,  accelerated from 5.8% to 12.6% in  2022, but then began to slow down to 8.3% in 2023 and further to 5.9%  in 2024, amounting to 10.2 trillion drams (approximately $26 billion)  in absolute terms. The GDP deflator index alsoincreased from 106.9%  to 108% in 2022, but then  declined to 103.1% in 2023 and  101.4% in  2024.