In the first quarter of 2026, economic growth in Armenia has slowed down somewhat, including due to some one-time factors, but is still relatively high, Armenian News-NEWS.am has learned from the Central Bank of Armenia.

Accordingly, the construction and service sectors continued to contribute significantly to Armenia's economic growth. The high activity of the service sector is mainly due to the expansion of demand-driven sub-sectors, indicating the high demands formed in the economy.

Moreover, signals of expansion of external demand are also observed, mainly expressed in the growth of tourist flows to Armenia. In this situation, the impact of aggregate demand on inflation is assessed as expansionary, although supplies still dominate the behavior of inflation.

On the other hand, the risks of a more expansionary fiscal stance have weakened, and private wage growth and inflation expectations continue to show mainly stabilizing trends in Armenia.