Page 28 - Caucasus Outlook 2025

The Central Bank of Armenia maintained a stable regulatory environment and implemented targeted measures to enhance financial inclusion and promote digital banking. Adoption of digital payment platforms increased by 18%, and the number of mobile banking users surpassed 1.2mn.
5.2.3 Industry
The industrial sector in Armenia experienced significant growth in 2024, with an overall output increase of 7.2% y/y, reaching AMD5.4 trillion ($12.7bn) by November. The expansion of the sector was driven by robust performances across the mining, manufacturing, and energy industries, which collectively contributed over 30% of the country's GDP.
The mining sector, a key component of Armenia's industrial base, saw a 9.3% growth, driven by high global demand for copper, molybdenum, and other essential minerals. Enhanced production capacities and rising commodity prices contributed to further growth, with exports from the mining industry accounting for nearly 40% of total export revenues.
The manufacturing sector recorded 8.5% y/y growth, supported by a diverse range of subsectors. The food and beverage manufacturing sector experienced a 10.1% increase, reflecting robust agricultural yields and heightened domestic and export demand. The textile and apparel industry experienced a 12.4% expansion, driven by an increase in orders from the European and Middle Eastern markets. Meanwhile, the electronics and machinery production sector saw a 6.8% increase, driven by investments in technological upgrades and innovation incentives provided by the government.
The energy sector grew by 5.7%, with a 14% increase in renewable energy output, including solar and wind projects, contributing to this growth. Hydropower also contributed positively, with production increasing by 3% due to favourable water conditions.
5.2.4 Major Sectors & Companies
The mining sector continued to be a key contributor, with notable contributions from companies such as Zangezur Copper-Molybdenum Combine and Lydian Armenia. Zangezur retained its status as a top export earner, contributing over 30% of Armenia's total export revenues. Lydian's ongoing development of the Amulsar gold project attracted further investment and presented promising future growth prospects.
The IT sector continued its rapid growth, with an increase of 14% y/y, thereby further consolidating its position as a key pillar of Armenia's economy. Leading companies like Synopsys Armenia and PicsArt were at the forefront of innovation, with Synopsys expanding its R&D operations and PicsArt increasing its global user base to over 150mn
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