ArmeniaChapters
Armenia has a middle-income economy that has recorded strong growth in recent years, mainly driven by the services sector, including tourism, transport and information technology. Economic activity is also supported by manufacturing and mining, as the country has significant natural resources. Armenia benefits from a relatively flexible exchange rate and has introduced measures to attract foreign investment, particularly in the technology sector. However, the economy remains highly dependent on external factors, especially trade, remittances and investment linked to Russia. Persistent structural challenges include high unemployment, poverty and a highly dollarised financial system. In addition, Armenia faces budgetary and current account deficits, reflecting strong import demand and rising public expenditure. Regional geopolitical tensions continue to weigh on economic stability and long-term prospects.
Source: Coface
Key indicators
- Area
- 29,743 sq km
- Population
- 3,033,500 (2024)
- Government type
- parliamentary democracy
- Languages
- Armenian (official) 97.9%, Kurdish (spoken by Yezidi minority) 1%, other 1%; note - Russian is widely spoken (2011 est.)
- GDP
- $25.96 billion (2024)
- Growth rate
- 5.9% (2024)
- HDI
- 69
- Capital
- Yerevan
Macroeconomic indicators
After the exceptional post-shock expansion of 2022-2023 (averaging 10.2% annually), Armenia’s real GDP grew around 6% in 2024 and has continued with the same pace in the first nine months of 2025. Over this period, growth was mostly driven by private consumption and investment (up by 10.2% and 19.6% respectively). On the supply side, growth was led by services, particularly ICT and financial services, and construction. It is projected that growth will ease but will remain above 5% in 2025, gradually converging toward its potential rate of 4.5% in the medium term, as consumption and investment growth moderate from their high bases. Unemployment fell to 12.3% in the second quarter of 2025, from 13.9% in the second quarter of 2024.
Inflation picked up in the first ten months of 2025, rising to 3.3% in October.
The dram was relatively stable over 2025 despite global volatility. Against the USD, the dram appreciated 3.6% in October, since the beginning of the year, but weakened against the EUR and the RUB (by 8.5% and 33.5% respectively). The current account deficit is expected to widen to 5% of GDP in 2025, with exports of goods weakening faster than imports. Deterioration in the trade deficit is expected to be partly offset by improved services and income balances. The fiscal deficit is projected to widen in 2025, driven by greater expenditure on defense, social security, and debt servicing, before gradually narrowing to 3.7% by 2027 due to fiscal consolidation.
Risks to the outlook include geopolitical tensions, weaker partner growth, and election-related uncertainty, which could weigh on exports, capital inflows, and business confidence. On the upside, progress toward peace and regional normalization, deeper EU ties, and regulatory reforms to foster investment and competition and to facilitate trade and connectivity could lift long-term growth.
Source: World Bank
IMF - Statistics:
| Subject descriptor | 2023 | 2024 | 2025 | 2026 | 2027 |
|---|---|---|---|---|---|
|
All Items, Consumer price index (CPI), Period average, percent change Percent (Units) |
2.007 |
0.378 |
3.33 |
2.788 |
2.904 |
|
Current account balance (credit less debit), Percent of GDP Percent (Units) |
-2.77 |
-4.602 |
-4.657 |
-4.717 |
-4.459 |
|
Current account balance (credit less debit), US dollar US dollar (Billions) |
-0.67 |
-1.195 |
-1.297 |
-1.372 |
-1.403 |
|
Exports of goods and services, Volume, Free on board (FOB), Percent change Percent (Units) |
42.568 |
26.952 |
-34.909 |
1.804 |
3.658 |
|
Gross domestic product (GDP), Constant prices, Percent change Percent (Units) |
8.347 |
5.851 |
4.8 |
4.9 |
5.5 |
|
Gross domestic product (GDP), Current prices, Per capita, US dollar US dollar (Units) |
7972.505 |
8330.239 |
8968.916 |
9392.848 |
10193.151 |
|
Gross domestic product (GDP), Current prices, US dollar US dollar (Billions) |
24.186 |
25.955 |
27.859 |
29.082 |
31.454 |
|
Imports of goods and services, Volume, Cost insurance freight (CIF), Percent change Percent (Units) |
50.813 |
30.043 |
-31.004 |
2.126 |
3.68 |
|
Unemployment rate |
12.4 |
13.9 |
13.5 |
13.3 |
13.1 |
Estimates
Source: IMF - Statistics
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 23.06.2009 (Memorial 2010, A, no. 54 p. 830)
- Effective as of 01.01.2011 (Memorial 2010, A, no. 54 p. 830)
Air Services agreement
None
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact point in Armenia
Embassy of the Grand Duchy of Luxembourg in Armenia
Ambassador with residence in Luxembourg: Mr. Alain de MUSYSER
9, rue du Palais de Justice
L-1841 Luxembourg
Tel.: (+352) 247-82311
E-mail: erevan.amb@mae.etat.lu
Site web : www.armenia.mae.lu
Honorary consuls
Yerevan
Honorary Consul with jurisdiction on Armenia:
Mr Souren ZOHRABYAN
A Tigranyan str. 35/1
Yerevan
Arménie
Tel.: (+374) 55 502 700
E-mail: yerevan@consul-hon.lu
Source: Ministry of Foreign Affairs of Luxembourg
Country risk as defined by Office du Ducroire for Armenia
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office – Country Risk for Armenia