Stronger competition is necessary for Armenia’s economic growth, according to a new report from the World Bank. The report, titled "Armenia’s Economic Pulse: Fairer Markets for Inclusive Growth," was released on November 21, 2025.
The World Bank’s analysis highlights that market concentration in Armenia reduces efficiency and fairness. The report calls for better enforcement of competition rules and improvements in supplier-retailer relationships. These measures are expected to lower prices, increase consumer choices, and help small producers compete more effectively.
“Competition is not just about prices, it’s about opportunities,” said Fabrizio Zarcone, World Bank Country Manager for Armenia. “When markets are open and transparent, small firms grow, consumers enjoy better choices and prices, and productivity gains translate into better jobs and shared prosperity.”
The report notes that Armenia’s macroeconomic fundamentals remain strong. Economic growth in 2025 has exceeded expectations due to strong consumer spending, investment, and growth in services and construction. Inflation reached 3.3% by October because of rising food prices. Unemployment fell to 12.3%. The World Bank projects economic growth at 5.2% in 2025 and 4.7% by 2027, with inflation stabilizing around 3%.
Recent reforms have brought Armenia's antitrust and consumer protection frameworks closer to international standards, improving the competition environment overall. However, the report points out that retail markets remain highly concentrated—a situation partly linked to the country’s limited market size—which reduces incentives for innovation and keeps productivity low.
A detailed section of the report examines the wholesale and retail sector. It finds that stronger enforcement of amended competition laws and increased awareness efforts by the Competition and Consumer Protection Commission could make markets more transparent and improve supplier-retailer relationships. This would allow small- and medium-sized businesses to compete more effectively, ultimately increasing consumer choice and market efficiency.
The report also recommends ongoing monitoring of market competition using integrated systems designed to provide smart oversight.
For further information or media inquiries regarding this report, contacts are available at the World Bank office in Yerevan or through World Bank Media Relations.