Back-to-Back: Economic Opportunities and Cooperation in Armenia

Evan Johnson is an International Trade Specialist in ITA’s Office of Russia, Ukraine, and Eurasia

Armenia is making waves as one of the fastest-growing economies in Eurasia, with an impressive GDP growth of over 8% in 2023—a testament to its resilience and strategic economic reforms. With this growth comes a wealth of opportunities, particularly for U.S. businesses looking to expand their global footprint. Recent events and initiatives are shining a spotlight on Armenia’s efforts to enhance commercial ties with the United States and create a fertile environment for international investment.

Here’s a closer look at some exciting developments and collaborations already underway:

1. Tech Bridges Between the United States and Armenia: U.S. companies are at the forefront of burgeoning “tech bridges” between startup ecosystems in cities like San Francisco, Boston, and Austin, and Eurasia’s booming tech hub, Yerevan, Armenia. Initiatives like these are beginning to boost opportunities in high-tech sectors, including research and development, automation, and cloud computing. With strong support from local universities, the Armenians’ efforts to establish and enforce intellectual property and technology transfer policies promises to empower students and researchers to commercialize their innovations. This collaborative environment is paving the way for U.S. firms to further engage Armenia’s growing pool of talent and innovation.

2. Sector-Specific Delegations and Regional Energy Projects: U.S.-based delegations from California and Massachusetts routinely travel to Armenia to explore opportunities in science and technology and U.S. companies interested in Armenia’s nuclear industry are beginning to travel with more frequency. Interest in U.S.-Armenian business partnerships is spreading. Business groups in Texas, Minnesota, Florida, and Virgnia are exploring opportunities to collaborate in agribusiness, medical devices, and more. Armenian IT delegations, interested in expanding to the United States, are considering visiting these states as well. Additionally, regional infrastructure projects, such as the Armenia-Georgia back-to-back electricity station, are gaining momentum. This initiative, which would enable cross-border electricity flow without altering electrical frequencies, highlights Armenia’s commitment to building resilient energy infrastructure. Opportunities for U.S. companies specializing in energy and infrastructure development are increasing as regional government led integration efforts turn into business opportunities.

3. Showcasing Armenia’s Innovation at Global Events: In October 2024, Armenia hosted two back-to-back landmark events aimed at showcasing its business potential. The Americas Competitiveness Exchange Program brought 20 U.S. companies to Armenia to explore opportunities in high-tech, communications and IT, energy, education, and agriculture. Concurrently, the World Congress on Innovation and Technology and Digitec Expo highlighted Armenia’s thriving startup culture, offering U.S. companies a front-row seat to its globally recognized innovation ecosystem. International Trade Administration Deputy Assistant Secretary David De Falco and Armenian Ambassador to the U.S., Lilit Makunts, have both underscored the significance of the deepening of the economic relationship between the U.S. and Armenia in recent articles published by the American Chamber of Commerce in Armenia. From technology and energy to agriculture and education, Armenia is actively seeking to strengthen its commercial engagement with U.S. businesses. From 2021 to 2022, U.S.-Armenia trade more than doubled and in 2023, the U.S. was among Armenia’s top five trade partners. Whether you’re a seasoned multinational or an emerging startup, now is the time to explore the opportunities Armenia has to offer.

Ready to Take the Next Step? For businesses interested in learning more about these opportunities, the International Trade Administration’s team of trade experts stand ready to help. Reach out to Office.Yerevan@trade.gov and discover how Armenia could be your next big market.