Asia Regional Integration Center

As the challenges of the pandemic and political uncertainties continued, Armenia reversed a 7.4% contraction in 2020, growing by 5.7% in 2021. Services expanded by 6.8% after contracting 8.8% in 2020, while industry grew by 3.8% following a 2.9% decline. Agriculture fell by 1.4% in 2021, the sixth consecutive year of decline. Higher remittances drive private consumption up by 3.4% following a steep 13.9% decrease in 2020. Public consumption growth fell from 15.2% in 2020 to 5.0% in 2021 as pandemic-related fiscal stimulus wound down. Inflation was well above the central bank’s target range, rapidly accelerating from 1.2% in 2020 to 7.2% in 2021. Barring any additional risk from neighboring conflicts, growth is projected to slow to 2.8% in 2022, gradually increasing to 3.8% in 2023 as the impact of economic shocks wanes.