Abstract <p>It is well established that small open economies are vulnerable to risks associated with external factors. Conversely, within the context of the modern global economy, the sources of growth for small economies are predominantly exogenous. This, in turn, necessitates a fresh perspective on economic growth theories as exogenous factors have evolved and assumed new, more pronounced forms. This article analyzes the Armenian economy through the lens of endogenous and exogenous factors affecting its economic growth. The study provides a detailed analysis of Armenia’s GDP structure, identifying key sectors that have served as engines of growth over the past two decades, which themselves remain highly susceptible to external influences. Consequently, the article posits and substantiates the hypothesis that Armenia’s economic growth over the last twenty years has been fundamentally exogenous in nature.</p>