Amulsar Mine Launch Projected to Boost Armenia’s 2025 GDP by Up to 0.5%

YEREVAN – The launch of the Amulsar mine this year could contribute up to 0.5% to Armenia’s GDP growth in 2025, according to Finance Minister Vahe Hovhannisyan.

When asked whether the government’s GDP projections remain realistic if the mine fails to launch, Hovhannisyan responded: “Armenia’s economic growth is returning to its potential, which we estimate at 5%–5.5%,” he said at a press conference Friday, noting that the high growth rates of recent years may lead to unrealistic expectations.

He emphasized that all economic growth targets set in the 2025 state budget remain achievable.

“Since the launch of the Amulsar mine is scheduled for the end of the year, its immediate impact will be minimal. The effect depends on when production officially begins,” Hovhannisyan added.

He also stated that he was not aware of specific discussions between the government and Armenian banks regarding the mine’s financing.

At its meeting on February 27, 2025, the Armenian government approved a decision to assist Lydian Armenia in securing credit funding. Specifically, the government will provide a budget guarantee allowing the company to attract up to $150 million in loans from Armenian banks, with a repayment period of up to five years, to support the launch of the Amulsar gold mine.

Armenia’s 2025 state budget projects economic growth of 5.1%. According to the Central Bank’s monetary policy report for the first quarter of 2025, GDP growth is expected to range between 4.5% and 7% by year’s end, 4.1%–4.7% in 2026, and 4.7%–6.1% in 2027.

Other forecasts for Armenia’s 2025 GDP growth include 5.5% from the Eurasian Development Bank (EDB), 4% from the World Bank (WB), 4.5% from the International Monetary Fund (IMF), 4.8% from the European Bank for Reconstruction and Development (EBRD), and 6% from the Asian Development Bank (ADB). Fitch Ratings predicts 4.9% growth, while the United Nations forecasts 5.2% growth in 2025 and 4.7% in 2026.