Armenia
RECENT ECONOMIC DEVELOPMENT
GDP grew by 5.7 percent in 2021 and 12.6 percent in 2022. Performance in 2022 was much higher than initially expected, with robust growth in services, 17.7 percent (y-o-y). The sub-sectors that drove the growth were: finance, IT, transport, accommodation, and public catering.
Private consumption grew up to 8.1 percent, yoy in 2022.
Industry and construction grew by 6 percent and 19 percent (yoy), respectively, while agriculture contracted by 0.7 percent (yoy).
Investment grew 4.1 percent (yoy) in 2022.
ARMENIA AND THE EaP
The Eastern Partner countries have been making steady progress in improving the business climate for SMEs. This overview of the Doing Business indicator of the World Bank shows how Armenia has improved over the years, gradually closing the gap with the best performing countries of the world (‘distance to frontier’). Armenia started off at 61.1 percent in 2010 and reached 74.5 percent in 2020 (latest data available).
Doing Business – Distance to frontier, EaP
Source: Doing Business, World Bank, www.doingbusiness.org
NATIONAL SME PERFORMANCE
Business demography indicators 2021
Source: Armstat, 2022.
IMPLEMENTATION PROGRESS
The EU’s support for SMEs in the EaP grew by 1.8 percent in 2021. Results for 2021 show a bounce back in terms of the numbers of SMEs supported by the EU and impressive performance of supported SMEs, creating more income and more jobs than in any previous year. The budget available to support SMEs in Armenia rose by 12.6 percent from 2020 representing an increase in € 12.6 million.
DATA FOR ARMENIA IN 2021