Armenia's economy has entered a new phase following the establishment of peace with Azerbaijan, Prime Minister Nikol Pashinyan said on June 16, linking stronger fiscal revenues, rising investment and demographic shifts to the 2025 peace process.

He said the agreement reached last year marked a structural turning point for the country. Armenia and Azerbaijan agreed on a draft peace accord in 2025, followed by a US-hosted signing ceremony in Washington in August, which Armenian officials say has begun to unlock investment and trade flows.

"We have crossed a turning point... we have increased the tax revenues of the state budget by 135%," Pashinyan told parliament during a debate on the 2025 budget implementation report.

He added that, after adjusting for inflation, "2025 is the year in which we have doubled the state budget's tax revenues compared to 2017."

Pashinyan said the breakthrough in relations with Baku had reshaped economic expectations and policy planning.

"2025 is the year in which we fully recorded that we have peace, we have established peace, and in essence, we have an end to the conflict between the Republic of Armenia and the Republic of Azerbaijan," he said.

The prime minister said the economy had outperformed forecasts, with growth exceeding expectations by about 2 percentage points, which he linked to reduced geopolitical risk.

He also pointed to social policy changes, including pension increases following stronger-than-expected revenue.

Demographic trends have also shifted, he said. "2025 is the first year... when, in fact, we have a pause in the emigration of citizens of the Republic of Armenia and we have immigration," he said, adding that returnees exceeded departures by 8,860 people.

Pashinyan said the post-conflict environment was enabling long-term infrastructure initiatives, including the TRIPP regional connectivity project aimed at turning Armenia into a transit hub linking the Black Sea, Persian Gulf and Caspian Sea.

He also highlighted growing technology investments, including artificial intelligence centres and planned energy-intensive facilities, warning of rising electricity demand.

The government is now focusing on expanding energy storage capacity with European Union support, he said, to accommodate new industrial demand and sustain growth momentum.