Armenia’s economy grew by 8% in the first five months of 2026, driven by strong performance in construction, industry and services. In May, the country also recorded a historic high of 823,584 registered jobs.
Over the same period, foreign trade turnover slightly declined, with exports falling year-on-year. International institutions, meanwhile, have raised their growth forecasts for Armenia for the year ahead.
Economic Growth
Armenia’s economic activity index grew by 8% in January–May 2026 compared to the same period last year. In May alone, the index was 9.9% higher than in April and 11.7% higher than in May 2025, according to data released by the Statistical Committee.
The strongest growth was recorded in construction. Construction output increased by 24.1% year-on-year in January–May, reaching 207.34 billion drams. In May, construction activity rose by 27.2% compared to April and by 27.1% compared to May 2025, totaling 62.69 billion drams.
Industrial production also saw significant expansion, increasing by 12.2% in the first five months of the year compared to the same period in 2025 and reaching 1.266 trillion drams. In May alone, industrial output increased by 1.2% compared to April and by 9.5% year-on-year, amounting to 262.99 billion drams.
The services sector, excluding trade, grew by 9.1% year-on-year in January–May, reaching 1.734 trillion drams. In May, services increased by 6.9% compared to April and by 14.7% compared to May 2025, totaling 391.31 billion drams.
Retail and wholesale trade turnover recorded more modest growth, rising by 1.2% in January–May compared to the same period last year and reaching 2.570 trillion drams. However, trade activity declined in May, falling by 1.6% compared to April and remaining unchanged compared to May 2025. Total trade turnover in May stood at 555.78 billion drams.
Foreign Trade
Foreign trade turnover slightly declined during the same period. According to the Statistical Committee, Armenia’s foreign trade turnover in January–May 2026 decreased by 0.1% year-on-year to $7.8647 billion.
Exports fell by 3.7% compared to the same period last year, totaling $2.8649 billion. In May alone, exports decreased by 4.7% compared to April and by 11.5% compared to May 2025, amounting to $522.7 million.
Imports, meanwhile, increased by 2.2% in January–May, reaching $4.9998 billion. In May, imports decreased by 6.1% compared to April and by 1.6% compared to May 2025, totaling $980.2 million.
Record Employment
Armenia also registered a record number of jobs in May 2026, Prime Minister Nikol Pashinyan said at a Cabinet meeting, describing the figure as another indicator of economic activity. According to Pashinyan, 823,584 registered jobs were recorded in May, surpassing the previous record of 822,662 jobs set in December 2025. He noted that December is usually the month when employment figures reach their peak, making the May result a significant signal for the economy.
“Our economy continues its growth pace. Of course, there will be certain impacts, but I am pleased to note that international institutions have raised their forecasts for Armenia’s economic growth,” Pashinyan said. He added that improved growth forecasts are also connected with major investment programs being implemented and planned in Armenia, and stressed that economic challenges remain part of the government’s agenda, with authorities focused on identifying problems and finding solutions.
Prices and Energy
Consumer prices increased by 4.5% in January–May compared to the same period last year. In May, prices decreased by 0.8% compared to April but were 4.2% higher year-on-year. Industrial producer prices rose by 8.9% in the first five months of 2026.
Electricity production also increased, with Armenia generating 3.994 billion kWh in January–May, up 7.7% year-on-year. In May, electricity production fell by 2.3% compared to April but increased by 13.3% compared to May 2025, reaching 656.9 million kWh.
Forecasts
The 2026 state budget projects 5.4% economic growth for Armenia. According to preliminary data, the country’s GDP grew by 4% in the first quarter of the year compared to the same period in 2025.
International financial institutions have set their 2026 growth forecasts for Armenia at 5.3% (World Bank), 5.25% (IMF), 5.5% (ADB), 5.5% (EBRD), 6% (EDB) and 5.3% (S&P Global Ratings), while Fitch Ratings projects above 5% for 2026–2027.
