Economic growth in Armenia has slowed down due to weakening demand. This is stated in the forecast of the Asian Development Bank (ADB) regarding Armenia. Economic growth forecasts for 2026 and 2027 remain unchanged at 5.0% and 5.5%, respectively. They are based on domestic demand, construction, service sector and tourism indicators. Against the background of remaining obstacles in trade processes, Armenia's deficit was 12.6% of GDP. Despite weakening demand, economic growth remained stable and reached 6.0% in the first half of 2026 (compared to 5.9% in the same period last year). Growth in the construction sector slowed slightly to 20.2% from 20.7% last year, but activity in the sector remained high thanks to ongoing infrastructure investment and housing projects. Growth in the services sector slowed to 6.0% from 7.0% last year. This is because the slowdown in growth in wholesale and retail trade, information and communication, financial and insurance, and professional services has had a greater impact than in transportation and storage. Recorded growth in the fields of economy, tourism-related activities, as well as administrative and support services. An 11.0% decrease was recorded in the agriculture sector (after a 5.9% increase in the previous year). Overall investment growth slowed sharply to 0.4% in the first half of 2026 from 25.2% a year earlier, as growth in fixed capital formation was largely offset by a more than 50% reduction in inventories. Import restrictions imposed by Russia and disruptions to regional trade ties due to the Middle East conflict will restrain growth. However, domestic demand, expansion in the construction and services sectors, growth in tourism and continued investment in fixed assets should support growth over the forecast period. Therefore, the growth forecasts for 2026 and 2027 remain unchanged. Inflation accelerated during the first seven months of 2026, reflecting rising global food and commodity prices, as well as disruptions to regional trade routes. In January-July 2026, the average inflation rose from 3.2% last year to 4.5%, which was helped by the 7.5% increase in food prices. Prices of services increased by 2.6%, and prices of other goods by 1.6%. In July 2026, annual inflation was 4.5%, exceeding the target range of 2-4% of the Central Bank of Armenia.