Construction and services remain key drivers of Armenia’s economic growth

A senior Central Bank official has said that the instability surrounding Iran has affected and continues to affect Armenia’s economy, particularly in terms of logistics chains and energy prices.

“On the other hand, we have observed a redirection of tourist flows from a number of Middle Eastern countries, including the United Arab Emirates, toward our region. Since May, we have recorded a sharp increase in tourist arrivals,” Deputy Governor of the Central Bank of Armenia Hovhannes Khachatryan said at a press briefing.

Addressing trade with Russia, Khachatryan noted that the impact of export restrictions has not yet fully materialized, as they have been in effect for only two months.

Ahead of the June 7 elections in Armenia, Russia began imposing restrictions on imports of numerous Armenian goods, prompting producers to seek new export markets. 

According to him, the restrictions have already been reflected in current indicators; however, Armenia’s economy maintained high growth rates in June and July.

“This is because other sectors, particularly construction and services, continue to be the main drivers of economic growth and are developing at a rapid pace. We are constantly monitoring various scenarios, assessing both inflation developments and potential changes in economic activity,” he said.