By Mark Dovich
Armenia’s gross domestic product hit an all-time high of more than $21 billion last year, according to preliminary data published Monday by the state-run Statistical Committee. That figure represents a year-on-year growth rate of 12.6%, the highest annual expansion rate Armenia has recorded since independence from the Soviet Union in 1991.
Much of the growth was driven by booms in finance, information technology, and transportation, with all three sectors growing by over 45% over the past 12 months. Hospitality, construction, wholesale and retail trade, and manufacturing all expanded by double-digit figures as well.
The United Nations namechecked Armenia in a major report last month as an economy that has “performed significantly better than foreseen…amid an inflow of people from the Russian Federation and the relocation of Russian businesses.”
Earlier this month, Fitch upgraded the Armenian government’s credit outlook to “positive” from “stable,” citing the influx of Russians — and billions of dollars — to the country. The rating agency said it “anticipates that a substantial proportion of new immigrants will stay in Armenia for at least two to three years and sees a substantial chance that some of the positive effects will endure.”
Banks in Armenia recorded an unprecedented net inflow of about $2.5 billion last year, according to Central Bank data, with over 70% of the transfers coming from Russia alone. About 65,000 Russians have moved to Armenia since Russia’s full-scale invasion of Ukraine began last year, figures from Armenia’s Migration and Citizenship Service suggest.
As a result of last year’s growth, Armenia’s GDP per capita now tops $7,200, the highest figure the country has ever recorded.
“People on average live far better than they did a year ago,” Economy Minister Vahan Kerobyan said at a press conference earlier this month.
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