Business Roundtable with the Armenian Minister of Economy
Following the signing of a joint peace declaration in Washington in August 2025, Armenia and Azerbaijan took an important step forward in October by mutually lifting cargo transit restrictions through each respective territory. This development has raised hopes for a sustained economic upturn across the South Caucasus.
To explore new market opportunities arising in the region, the German Eastern Business Association and DIHK organised a Business Roundtable with the Armenian Minister of Economy, S.E. Gevorg Papoyan, on 29 October.
Our colleagues Dmitry Chervyakov and Ricardo Giucci joined the event alongside around 50 other representatives from companies and associations and shared insights from our latest Economic Monitor for Armenia.
Despite geopolitical tensions in the region, our analysis shows that Armenia has been experiencing robust growth for several years. Economic growth is expected to stabilise at around 5% in 2025/2026. While expansionary fiscal policy continues to support economic growth by strengthening consumption and investment, this is also reflected in elevated budget deficits of 5.5% in 2025 and 4.5% in 2026, as well as in public debt levels that exceed the fiscal rule of 50% of GDP.
Economic growth is also reinforced by an increase in productivity. The IT sector in particular shows promising prospects, with its share of total gross value added increasing from 3.5% in 2021 to 8.3% in 2024. Meanwhile, inflation is expected to remain low at around 3%, thus staying within the new target of the Central Bank of Armenia.
You can find the full analysis here.
We thank the German Eastern Business Association and DIHK for the kind invitation and organisation of this event!
