Armenia - The Second Systematic Country Diagnostic - Beyond Boundaries: Unlocking Potential for a Sustainable Tomorrow

Jul 19, 2026

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This Second Systematic Country Diagnostic for Armenia assesses the drivers of growth and poverty reduction within a rapidly changing context since 2017. It identifies key challenges to resilient, sustainable, and inclusive growth, including vulnerability to shocks, environmental risks, and fragility, as well as constraints in market access, trade integration, human capital, and private sector development. The report sets policy priorities and high-level outcomes, linking governance, institutions, and data to implementation needs.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages151

Reading Time6 h 21 min

Executive Summary

A rapidly changing context

Key challenges to inclusive and sustainable growth

Leveraging opportunities

1. Introduction

2. Background: Sociopolitical Events and Key Reforms since 2017

3. Trends in Growth, Poverty, and Shared Prosperity

3.1. Growth Trends

3.2. Poverty Trends

3.3. Equity Trends

4. Drivers of Growth and Poverty Reduction

4.1. Drivers of Growth

4.2. Drivers of Poverty Reduction

5. Key Challenges to Resilient, Sustainable, and Inclusive Growth

5.1. Vulnerability to Shocks and Environmental Risks

5.2. Accessing Markets and Trade Integration

5.3. Quality of Human Capital

5.4. Private Sector Development

5.5. Cross-Cutting Theme: Governance, Institutions, and Data

6. Policy Priorities and High-Level Outcomes

6.1. Approach to Prioritization and Results

6.2. High-Level Outcomes

References

8. Appendixes

Appendix A. Selected Actions and Policy Reforms since 2017

Appendix B. Government 2021–26 Program (Armenia 2021–26)

COUNTRY DIAGNOSTIC BEYOND BOUNDARIES: Pub lic Disc losure Authorized UNLOCKING POTENTIAL FOR A SUSTAINABLE TOMORROW Public Disclosure Authorized Public Disclosure Authorized THE SECOND SYSTEMATIC ARMENIA Pub lic Disc losure Authorized ARMENIA THE SECOND SYSTEMATIC COUNTRY DIAGNOSTIC Beyond Boundaries: Unlocking Potential for a Sustainable Tomorrow © 2024 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; [Internet: www.worldbank.org](Internet: www.worldbank.org) [Some rights reserved.](Some rights reserved.) This work is a product of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/ footnotes and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2024. Armenia. The Second Systematic Country Diagnostic. Beyond Boundaries: Unlocking Potential for a Sustainable Tomorrow. © World Bank.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e mail: [pubrights@worldbank.org](pubrights@worldbank.org). Cover photo: © Eva M / Adobe Stock Page 1: Photo: © Vrezh / IStock Page 8: Photo: © MindStorm-inc / IStock Page 17: Photo: © Sigmund / Unsplash Page 26: Photo: © Armine Grigoryan / World Bank Page 45: Photo: © Armine Grigoryan / World Bank Page 94: Photo: © lovelypeace / IStock Page 106: Photo: © Nerses Khachatryan / Unsplash Cover design: Florencia Micheltorena iii Contents Executive Summary 1 A rapidly changing context 2 Key challenges to inclusive and sustainable growth 3 Leveraging opportunities 6 1. Introduction 8 2. Background: Sociopolitical Events and Key Reforms since 2017 13 3. Trends in Growth, Poverty, and Shared Prosperity 17 3.1. Growth Trends 18 3.2. Poverty Trends 22 3.3. Equity Trends 23 4. Drivers of Growth and Poverty Reduction 26 4.1. Drivers of Growth 27 4.2. Drivers of Poverty Reduction 38 5. Key Challenges to Resilient, Sustainable, and Inclusive Growth 45 5.1. Vulnerability to Shocks and Environmental Risks 47 5.1.1. Fragility and the Risks of Conflict 47 5.1.2. Vulnerability to Economic Shocks 49 5.1.3. Climate Change, Environmental Risks, and Natural Hazards 53 5.1.4. Risk Differentiation 55 5.1.5. Vulnerable Populations and Building Resilience 56 5.1.6. Governance and Institutional Bottlenecks – A Related Example in the Water Sector 57 5.1.7. Binding Constraints 58 5.2. Accessing Markets and Trade Integration 58 5.2.1. Trade Integration and Global Value Chains 59 5.2.2. Infrastructure and Border Management 61 5.2.3. Digital Access 66 5.2.4. Diasporas as a Catalyst for Enhancing Connectivity 67 5.2.5. Governance and Institutional Bottlenecks – A Related Ex

FAQs

What is the purpose of the Armenia Second Systematic Country Diagnostic?

It analyzes Armenia’s growth and poverty-reduction drivers, highlights constraints, and informs policy priorities aimed at resilient, sustainable, and inclusive growth.

Which major challenge areas does the report cover?

It covers vulnerability to shocks and environmental risks, access to markets and trade integration, human capital quality, private sector development, and cross-cutting governance, institutions, and data.

How does the report translate findings into policy direction?

It presents an approach to prioritization and formulates high-level outcomes, connecting identified constraints to recommended policy priorities and implementation needs.

Jul 19, 2026

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