In the fourth quarter of 2024, economic activity in Armenia continued to approach the estimated level of long-term sustainable growth, the Central Bank of Armenia informs Armenian News-NEWS.am.

Economic growth in Armenia was largely contributed by high growth in construction, services, and trade. It continued to be affected by some short-term factors, containing significant uncertainties regarding the sustainability of economic growth, the long-term outlook, as well as future trends in domestic demand.

External demand for services continues to be adjusted. In such a situation, labor market conditions have weakened somewhat—reflected by a certain reduction in wages, hard-priced services inflation, and inflationary expectations.

Along with these developments, risks of additional demand stimulation by Armenia’s fiscal policy remain.