World Bank2025-02-042025-02-042025-02-04https://hdl.handle.net/10986/42759Armenia, a landlocked country in the South Caucasus with a population of three million, has registered important achievements over the past two decades. Between 2000–2023, Armenia achieved robust economic growth averaging 6.3 percent, above the average for Europe and Central Asia (excluding high-income countries). Growth has been accompanied by a structural transformation of the economy with a gradual shift from low-productivity agriculture toward industry and services (especially, tourism and Information and Communication Technology (ICT)). The country has achieved near eradication of extreme poverty and has registered important improvements in life expectancy, survival rates, school enrollment rates and other welfare measures, although the incidence of poverty remains high, considering Armenia’s income level, particularly in the rural areas. Armenia has a record of sound macroeconomic management and a stable financial sector. All these factors enabled Armenia to graduate from the International Development Association (IDA) in 2014 and be an upper middle-income country (UMIC) since 2019. Armenia became an IDA donor in 2023 and its Gross National Income per capita stands at US$7,330 in 2023. To build on these achievements, stem outward migration, and avoid the middle-income trap, Armenia will have to transition towards a growth model with a greater focus on job creation and resilience. 1en-USCC BY-NC 3.0 IGOECONOMIC GROWTHDECENT WORKPARTNERSHIP FOR THE GOALSINFORMATION AND COMMUNICATIONS TECHNOLOGIES (ICT)CLIMATE ACTIONINNOVATIONCountry Partnership FrameworkWorld Bank10.1596/42759https://doi.org/10.1596/42759