Armenia's GDP rose by 4.3% in the first ten months of 2021 compared to the same period the previous year, with development in practically all sectors of the economy.

In October 2021, the economic activity index was up 3.6% year over year, but down 4.9% from September of this year.

Except for energy usage, all industries experienced growth.

The effect of the coronavirus epidemic and the conflict over Nagorno-Karabakh dimmed expectations for recovery in the first quarter of 2021, with GDP falling 3.3% year on year. Despite recent significant development, Armenia's economy has been hit by a twin whammy of COVID-19 pandemic restrictions and last year's six-week renewal of the fighting between Azerbaijan and Armenian troops over the Nagorno-Karabakh territory and neighbouring regions.

The ex-Soviet country's economy grew in the second quarter of this year, aided by rising commodity prices on global markets, agricultural expansion, and strong tax collection numbers. In April-June, GDP increased by 13.1% year over year and 17.4% when compared to the first quarter of this year.

As a result, the government revised its economic growth prediction to almost double what it had previously expected — from 3.2% to 6%. The central bank raised its own economic growth forecast for 2021 from 4.6% to 5.4%, citing fast development in the service and agriculture sectors as justification.

Industrial output increased by 1.1% year on year to almost 3.4 billion euros, construction output increased by 5.9% to 545 million euros, and services (excluding commerce) increased by 6.4% to over 2.6 billion euros.

Armenia's growth is expected to be 6.1% in 2021 and 4.8% the following year, according to the World Bank. Armenia's economy is anticipated to increase 6.5% in 2021 and 4.5% in 2022, according to the International Monetary Fund's latest World Economic Outlook report released in October.

Armenia's long-term foreign-currency issuer default rating (IDR) was confirmed at 'B+' by Fitch Ratings in May, with a stable outlook.

Armenia's economy will rebound somewhat this year and next, according to Fitch Ratings, as the nation recovers from the COVID-19 epidemic and a flash conflict with Azerbaijan.

The rating agency predicted that GDP would grow by 3.2% in 2021 and 4.0% in 2022, saying that while economic activity was improving, some industries, such as banking, remained damaged by the recent slump.

Armenia also possessed a strong macroeconomic and fiscal policy framework, as well as a credible commitment to change, according to Fitch, all of which were backed up by the IMF standby agreement.

Armenia received a 'B+' long-term foreign- and local-currency sovereign credit rating from S&P Global Ratings, as well as a 'B' short-term foreign- and local-currency rating. The future seems promising.

Armenia has likewise been awarded the agency's 'BB-' transfer and convertibility grade.

S&P said the Armenian economy was improving and that the country's GDP will reach 2019 levels by next year, with growth stabilising at around 4% per year in the long term.