Armenia`s industrial sector sagging due to declining manufacturing industry volumes

ArmInfo.  In the first quarter of 2025, Armenia's industrial sector experienced a decrease in production volumes by 18.5% per annum (compared to a 30.4% growth in the same period of 2024), totaling about 600 billion drams ($1.5 billion). However, in March alone, industrial production volumes increased by 15.9% to 219.3 billion drams ($558.4 million), as reported by the RA Statistical Committee.  The decline in the annual  dynamics of the industrial sector was primarily due to reduced  volumes in the manufacturing industry and an accelerated decline in the mining industry.

The mining industry accelerated its annual decline from 4.6% to 10.6%, reaching 97 billion drams.  However, in March, the sector demonstrated significant growth of 54% to 38.4 billion drams.  The manufacturing industry experienced a sharp reversal in its annual dynamics, shifting from a 47.6% growth to a 26% decline, with a volume of 390 billion drams. In March alone, the manufacturing sector demonstrated an increase in volumes by 15.3% - to 146.8 billion drams.

Specifically, production volumes of basic metals dropped  significantly - by 78.7%, the jewelry industry - by 75.3%, leather  and leather products - by 24%, clothing - by 16.3%, beverages - by 15.5%, and furniture - by 10.5%.  The highest annual growth rates were recorded in the production of machinery and equipment - 3 times, cigarettes - by 98.7%, computers, electronic and optical equipment - by 91.4%, motor vehicles, trailers, semi-trailers - by 84.6%, coke and petroleum products - by 54.1%.

In terms of production volumes, the manufacturing industry  leaders were food products (120.2 billion), cigarettes (70.1 billion), basic metals (51.7 billion drams) and beverages (41.5 billion). According to statistics, the supply of electricity, gas, steam and air conditioning in the first quarter of 2025 increased by 9.8% per annum compared to a 13.3% growth a year earlier), totaling 105.6 billion drams, with a decline of 7.2% in March to 31.5 billion drams. The generation, transmission and distribution of electricity in the annual context increased by 11.8%, while gas production, distribution of gaseous fuel through gas supply systems - by 3.8%. Revenues from  water supply, waste treatment and processing and the receipt of secondary raw materials slowed in annual growth from 6.6% to 1.5%, amounting to 7.2 billion drams. In a monthly context, this segment showed an increase of 5.4% - to 2.5 billion drams, with a decline in waste collection, processing and disposal segment annual growth causing the  slowdown in annual growth by 6.2%.  The average exchange rate of the dram was AMD 395.42/$1 in the first quarter of 2025, and AMD 392.78 /$1 in March.