Skip to Main Navigation

Overview

Country Context

ARMENIA

2020

Population, million

2.9

GDP, current US$ billion

12.6

GDP per capita, current US$

4,301.2

Poverty Rate (US$5.5/day 2011 PPP terms) (2019)

44

Life Expectancy at birth, years (2018)

75.1

Armenia’s economy expanded rapidly between 2017 and 2019, with the annual GDP growth rate averaging 6.8 percent. Prudent macroeconomic policies helped establish a track record of macroeconomic stability and an improved business environment following the political realignment of 2018.

However, in 2020 the twin shocks of the COVID-19 pandemic and the military confrontation with neighboring Azerbaijan derailed Armenia’s economic expansion and resulted in a sharp 7.4 percent contraction of the economy. These shocks were accompanied by an increase in poverty, especially among the urban populations and those not well covered by the Government’s pension and social assistance programs.

The Government’s fiscal response to the pandemic, which included spending packages and some tax breaks, combined with a decline in revenues due to the economic contraction, resulted in an increase of the public debt ratio to 67.4 percent of GDP in 2020.

Although a recovery is underway, long-standing structural issues prevent the country from reaching its full potential, including weak connectivity, the fiscal challenges of an aging population and significant outward emigration, pervasive informality, and skills mismatches. The persistence of geopolitical tension in the region continues to undermine investor confidence and exacerbate existing challenges.

Last Updated: Oct 12, 2021

LENDING

Armenia: Commitments by Fiscal Year (in millions of dollars)*

*Amounts include IBRD and IDA commitments

STAY CONNECTED

The World Bank
PHOTOLURE
PHOTO GALLERY
More Photos

In Depth

Additional Resources

Country Office Contacts

Yerevan, Armenia
9 Grigor Lousavorich St., Yerevan 0015, Armenia
+374-10-52-09-92