Armenia's economy is demonstrating steady growth, but retains a number of systemic constraints. This was written by financial analyst Narek Avakyan, noting that positive macro-dynamics are combined with a number of long-term imbalances affecting the sustainability of development.
Among the main problems, he highlights the high dependence on a limited number of trading partners, primarily Russia and the UAE, as well as unbalanced foreign trade and weak investment activity. According to him, a significant part of exports are either re-exports or goods with low added value, and the level of investment remains below the norm for developing economies.
The expert paid special attention to the financial sector and regional inequality. He noted the high concentration of the economy in Yerevan and the limited development of the stock market and lending. At the same time, current indicators look positive: GDP growth in 2025 amounted to 7.2%, inflation is kept at around 3%, and the economy is approaching $30 billion with a forecast for further growth.
