The development of information technology (IT) is a key driver of Armenia’s economic growth, significantly influencing GDP and sectoral dynamics. This research employs regression analysis to examine the impact of IT alongside agriculture, industry, and construction. The findings indicate that IT has the strongest positive effect on GDP, reinforcing Armenia’s transition toward a knowledge-based economy. However, various challenges such as talent migration, limited educational investment, and currency fluctuations pose significant risks to sustainable growth. To address these issues, the authors recommend expanding technological education, fostering industry-academic collaboration, and implementing targeted policies to retain and attract IT professionals. These measures are essential to maintain Armenia’s competitive position in the global digital economy and ensure long-term economic stability. The presented research analyzes the development of the IT sector in the Republic of Armenia. Moreover, the authors conduct a quantitative assessment to determine its impact on the dynamics of the country’s gross domestic product.