UNDER THE LOAN: AN ANALYSIS OF ARMENIAN BANKING SECTOR AND CREDIT TRENDS

his study examines recent trends in Armenia's banking sector and export patterns, revealing underlying economic vulnerabilities despite apparent growth. Using data from the Central Bank of Armenia and official trade statistics, this paper analyzes shifts in lending patterns across various economic sectors and changes in export composition. Our findings indicate a concerning decline in industrial sector lending, coupled with a significant increase in mortgage and consumer loans. Additionally, we observe a heavy reliance on precious metal re-exports for economic growth, raising questions about the sustainability of Armenia's current economic trajectory. This research contributes to the understanding of potential risks in Armenia's financial system and highlights the need for diversification in its export base.