Economic activity slowed down in Armenia in July, reaching 6.5% from 7.4% in June. About it is noted In the World Bank report.
"Construction and the services sector continue to be the main drivers of growth, growing by 26.5% and 17% respectively.
The growth of construction was accompanied by the revitalization of the real estate market. In July, the number of apartment transactions in Yerevan almost doubled, and prices in the city center increased by 12.7%, which was helped by the new influx of Russians and representatives of the Armenian diaspora. Business registrations also increased by 29% in July, helped by a 45.7% increase in LLC registrations.
Industrial production increased slightly by 3.1%.
In general, economic activity increased by 7.7% in January-July 2026, exceeding initial forecasts.
In August, inflation decreased slightly, from 4.5% in July to 4.4% (on an annual basis). The prices of food and non-alcoholic beverages account for 57% of the total inflation.
In July, exports decreased by 15.7%, while imports increased by 21.5%. The decrease in exports was caused by a 66.2% drop in the prices of precious and semi-precious stones.
Exports of agricultural products fell sharply, by 52.2% for vegetable products and 15.2% for agricultural products, due to the tightening of restrictions by Russia.
Between January and July, exports fell by 7.9% and imports rose by 7.7%, bringing the trade deficit to a projected 10% of annual GDP, partially offset by services and income.
In the same period, the flow of tourists (mainly from Russia) increased by 6%.
In July, net non-commercial remittances increased by 40%, mainly due to the continued inflow of funds from Russia (increase: 37.3%), as well as due to the steady inflow of Russians to Armenia.
In August, the dram strengthened against the dollar by 0.4% and against the euro by 1.1% (on a monthly basis), as well as by 4.6% against the dollar compared to August 2025, although it depreciated by 8.6% against the ruble.
Thanks to active remittances and capital inflows, gross reserves rose to a record $6.5 billion in August, equivalent to 4.3 months of import coverage,” the report noted.
