Armenia`s economic growth slowed to 7% in January-July 2025, with a  41.4% decline in foreign trade

ArmInfo. In Armenia, economic activity growth in January-July 2025 slowed down to 7% per annum (from 9.6% in the same period of 2024). Moreover, the industrial  sector, which was one of the growth drivers a year earlier, is now  weakening the pace of economic growth.

 According to preliminary data  from the RA Statistical Committee, this decline is accompanied by a  deterioration in the foreign trade trend, shifting from a significant  growth to a significant decline.  According to statistics, the  slowdown in economic activity growth in January-July 2025 was largely  due to the deterioration in the annual dynamics of the industrial  sector, which went from 15.7% growth to a 9.8% decline and a  significant slowdown in the growth of the trade sector from 21.4% to  3.9%. There was a slight increase in the already meager growth in the  energy complex - from 1.1% to 2.1%. However, the service sector  managed to accelerate in annual growth from 4.5% to 10.6%, which was  also noted at a more pronounced pace in the construction sector,  going from 16.1% to 20.2%. There is no data available on the  agricultural sector, as the Statistics Committee only includes them  in quarterly and annual reports. 

According to statistical data for January-July 2025,  the trade  sector is leading with a volume of 3.5 trillion.  AMD ($9.1 billion).  The service sector comes in  with  2.2 trillion AMD ($5.6 billion),  followed by the industrial sector - 1.5 trillion AMD ($3.8 billion)/  Due to a lack of data on the agricultural sector,  the construction  sector occupies the forth place- 293.3 billion AMD ($751.5 million).  The volume of power generation in January-July 2025 amounted to  5097.9 million kWh, of which 772.3 million kWh in July alone. At the  same time, in July 2025, compared to July 2024, economic activity  accelerated in growth to 9.1% (from 6.2% a year earlier), and in July  alone, growth slowed from 8.7% to 5.5% (compared to a more pronounced  growth slowdown in July 2024 from 11.1% to 5.6%). In July 2025, the  growth of the industrial sector accelerated from 2.5% to 7.4%, while  a year earlier, the dynamics exited from a 2.5% decline to 2% growth.  At the same time, in July, the construction sector experienced a  slowdown in growth from 21.1% to 15.2%. The services sector saw a  slight acceleration from 1.1% to 1.8%. In July,  the energy sector  experienced a significant acceleration in growth from 6.3% to 25.3%,  and the trade sector also saw growth acceleration from 6.2% to 8.4%.   In annual terms (July 2025 to July 2024), all sectors experienced  growth: the highest annual growth was shown by the construction  sector - 26.1%, followed by the services sector - 11.1%, the energy  complex - 10.3%, the industrial sector - 4.2%, and the trade sector -  3.8%. A year earlier,  all sectors also showed growth: the  construction sector - by 17.7%, the trade sector - by 14%, the  services sector - by 4.9%, the energy complex - 4.7%, and the  industrial sector - by 2.2%.  Against this backdrop, Armenia's  foreign trade turnover in January-July 2025 amounted to 4.5 trillion  drams ($11.5 billion), a decrease of 41.4% per annum (compared to   95% growth a year ago). This is due to a significant drop in both  exports and imports - by 48.3% and 35.8% per annum, respectively,  while last year both indicators showed significant growth - 2.2 times  (exports) and 79.1% (imports). As a result, the absolute value of  exports for January-July 2025 amounted to 1.8 trillion drams ($4.5  billion), and imports - 2.7 trillion drams ($6.99 billion). In July  2025, compared to July 2024, foreign trade turnover fell by 14.3% due  to a decrease in both exports by 10.8% and imports by 16.5%, while a  year earlier in July 2024, compared to July 2023, foreign trade  turnover showed growth of 35.3% due to an increase in exports by  42.8% and imports by 30.7%. 

Note that since 2023, the methodology for calculating the volume of  generated electricity has changed in statistical reports.  Specifically, the volume of power generated by autonomous producers  is now being taken into account. Data for the agricultural sector are  only published  in quarterly and annual statistical reports. (The  average calculated exchange rate of the dram in January-July 2025 was  AMD 390.27 / $ 1).