The Systematic Country Diagnostic (SCD) provides an assessment of the constraints Armenia should address and the opportunities it can embrace to accelerate progress toward the twin goals of ending extreme poverty and promoting shared prosperity. The first-generation SCD in Armenia, published in 2017, highlighted the need for a new growth model grounded in greater productivity, and it identified four main related challenges: (1) poor external sector performance, (2) low private sector productivity, (3) insufficient labor productivity, and (4) key macroeconomic, environmental, and microeconomic vulnerabilities. This second-generation SCD looks into the future by reflecting on the five years that have transpired since 2017. It finds that the challenges identified in SCD remain valid, while it highlights new challenges related to fragility, conflict, and violence. It also finds that governance, institutional capacity, and investment in data are cross-sectoral constraints.