Armenia`s industrial sector is experiencing a significant  decline

ArmInfo.  From January to May 2025, Armenia's industrial sector experienced a significant decline of 14.1%  (compared to a 22% growth for the same period the previous year), resulting in a total volume of more than 1 trillion drams (over $2.6 billion). In May alone, industrial production grew by 2.9% to 218.6 billion drams ($565.4 million), as evidenced by data from the Statistical Committee of the Republic of Armenia.

Such annual dynamics of the industrial sector are influenced by a noticeable decrease in  the manufacturing industry volumes and a continued decline in the mining industry. Specifically, the mining industry and open-pit mining experienced a slowdown in the annual decline from 8.8% to 1.6%, with a volume of 177.5 billion drams. In just one month, the mining industry showed growth of 12.1% - up to 45.5 billion drams.  The volume of the manufacturing industry, which shifted from 33.7% growth towards 21.5% decline, amounted to 685.5 billion drams. During the same month, the manufacturing sector saw an increase in volumes by 3.2% - up to 150.1 billion drams. The annual  decline in  the manufacturing industry was provoked by a negative trend in key sectors such as basic metals, which experienced a 76.3% decline, as well as other non-metallic products - to an 11.8% decline, beverages - to a 13.2% decline, clothing - to a 10.4% decline, jewelry industry - to a 70.4% decline. At the same time, the machinery and equipment production sector showed high growth - 2.4 times, cigarettes - by 75.1%, coke and petroleum products - by 82.9%, chemical industry - by 51.4%,  and computers, electronic and optical  equipment - by 68.9%. In the manufacturing industry, the leading products in terms of production volumes are food products (215.4 billion drams), cigarettes (119.7 billion), basic metals (77.1 billion), beverages (73.7 billion), and other non-metallic products (55.4 billion drams).

According to statistics, the supply of electricity, gas, steam, and  air conditioning increased by 11.4% annually in January-May 2025, reaching 155.5 billion drams. In May alone, there was a decline of 11.8%, amounting 23.4 billion drams. Additionally, the generation, transmission, and distribution of electricity increased by 13.1% annually, while gas production, distribution of gaseous fuel through gas supply systems increased by 4.7%.

Revenues from water supply, waste treatment, processing, and  secondary raw materials increased by 0.8% year-on-year, totaling 12.3 billion drams in January-May. In May alone, this segment showed a 0.9% decline, reaching 2.5 billion drams. Moreover, the annual increase was primarily driven by the collection and treatment of wastewater (an increase of 3.7%). Note that the average exchange rate of the dram in January-May 2025 was AMD 392.72/$1, and in May - AMD 386.63/$1.