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    Core area “Sustainable economic development, training and employment” Digital skills for future prospects

    Armenia's economy is growing; nevertheless, structural weaknesses are curbing the opportunities of large sections of the population. High levels of unemployment, informal employment and persisting poverty levels are affecting young people in particular, and fuelling social tensions. Targeted projects are supporting the country in its efforts to make its economy more sustainable, resilient and fit for the future.

    Armenia's economy is growing in nominal terms. However, behind these growth figures are deep structural problems. Despite real economic growth in the past few years, unemployment and informal employment are at a high level. In addition, one fifth of the population is living below the national poverty line, and deficits in infrastructure and low investment in human capital and capital goods are limiting the prospects of many Armenians. These economic challenges are being fuelled by demographic imbalances and by many young, skilled workers leaving the country.

    In addition, Armenia finds itself in a difficult geopolitical environment which has the effect of further hampering the country's economic development. The closed borders with some neighbouring countries and the continued threats to security because of unresolved conflicts are hindering foreign trade and regional integration.

    Goals for the sector

    The measures in Armenia are aimed at making the country's economy more crisis-resilient and setting it on a sustainable pathway for the future. The focus is on promoting competitiveness, innovation and digital transformation, especially among small and medium-sized companies so as to make them fit for regional and European markets.

    Project examples

    • A project in Armenia is supporting the transition towards an economy that is geared for the future. It is promoting green and digital skills in vocational training and further expanding the range of available training and upskilling programmes. In addition, it is contributing to aligning the innovation ecosystem with the needs of the Armenian economy. It is involving entrepreneurs in these efforts and integrating sustainable business models.
    • Another project is making the required local currency loans available to small and medium-sized Armenian companies. This provides medium-sized enterprises with the necessary liquidity to carry out the much-needed modernisation of their corporate infrastructure – a precondition for competitiveness, employment and economic growth.
    • A regional project is working with the Ministries of Economy in Armenia, Azerbaijan, Georgia and Moldova and the Ukrainian Ministry of Digital Transformation to promote the digital transformation of small and medium-sized companies. It is facilitating regional exchange formats and study visits, strengthening cooperation within digital and entrepreneurial ecosystems – especially via Digital Innovation Hubs – and fostering entrepreneurial skills.
    • Another project is focused on transport, trade and logistics in the countries of the region and brings together climate protection efforts and digital technology. It involves planning and implementing climate-friendly transport solutions, supporting digital procedures and cooperation with customs authorities in cross-border transport of goods and upskilling small and medium-sized companies by providing training for using digital and climate-friendly solutions.

    As at: 26/05/2026