Legal Market Overview
In 2020, Armenia was rocked by the twin shocks of the Covid-19 pandemic and a six-week conflict with Azerbaijan over the disputed region of Nagorno-Karabakh. Following on from several years of strong growth, these events led to a significant economic downturn for the country, with GDP declining by 7.6% in 2020. It also led to substantial political turmoil; significant protests following the signing of the ceasefire with Azerbaijan, culminating in snap elections in June 2021 in which the incumbent government of Nikol Pashinyan was re-elected.
Despite these issues, the Armenian economy has rebounded in 2021, with GDP growth reaching almost 5% in the first half of the year and the World Bank projecting the country to achieve 4.8% growth in 2022. Mining and agriculture remain key sectors of the economy, with real estate and renewable energy also areas of growth. The Armenian government is also investing in a number of infrastructure projects, partly in response to damage sustained during the conflict.
Armenia’s local law firms have broad practices across corporate, labour, tax and regulatory law as well as litigation, and act both for domestic clients and multinationals looking to enter the Armenian market. Criminal law is also a key area of focus for several major Armenian firms.