Armenia's economy is projected to grow by 5% in 2025 and 4.6% in 2026 as previous growth factors diminish.

Armenia's economic growth is expected to slow to a range of 5%–4.6% in 2025 and 2026. According to the World Bank, this slowdown reflects a return to potential growth rates after the extraordinary factors of 2024, such as re-exports, increased tourism, and real wage growth, gradually fade. The same trend is attributed to Georgia.

The World Bank report states that Armenia’s economy grew by 5.5% in 2024 but will decelerate to 5% in 2025 and 4.6% in 2026.

In Azerbaijan, oil production is forecast to decline, further reducing the South Caucasus region’s overall growth rates to 3.9% in 2025 and 3.4% in 2026.