Reduction in Armenia`s industrial sector, index of industrial  products prices up

ArmInfo.In Armenia, the industrial price index increased in January- April 2025 compared to the same  period in 2024 from 100.7% to 102%. This was observed against the background of a deterioration in the annual dynamics of the industrial sector from 26.8% growth to 16.1% decline, with a volume of 812.3 billion drams ($2.1 billion). This is evidenced by the preliminary data of the RA Statistics Committee. 

At the same time, in April 2025, compared to April 2024, the  industrial price index decreased from 103.7% to 101.9%. During this  period under review, the industrial sector also showed a decline in  volumes by 8.7%, while a year ago there was a double-digit growth of  16.3%. It is noteworthy that inflation was recorded in the consumer  market of Armenia during these periods under review. In particular,  in January- April 2025, compared to the same period of 2024,  inflation was 2.7%, and in April 2025 to April 2024, inflation was  3.2%, against the deflationary 1.1% and 0.7% in the same periods a  year ago. Moreover, inflation in the consumer market was mainly  supported by the increase in food prices: in January-April 2025  compared to the same period of 2024 - by 4.4%, and in April 2025 to  April 2024 - by 5.3%, whereas a year earlier in the same periods a  decline in food prices was recorded - by 4.5% and 3.3%, respectively.  At the same time, services continue to rise in price: by 2.7% in  January-April 2025 compared to the same period in 2024 and by the  same 2.7% in April 2025 compared to April 2024, against almost the  same rates a year ago - 2.9% and 2.8%, respectively.

It is worth noting that this is accompanied by a slowdown in the  growth of economic activity in Armenia in January-April 2025 from  13.2% to 4.4% per annum, and in April 2025 to April 2024 - from 10.4%  to 5.4%.

At the same time, there is a deterioration in the annual dynamics of  foreign trade turnover in January-April 2025 to a decline of 52.9%  from a growth of 2.4 times in the same period of 2024, as a result of  a decline in both exports - by 60.3%, and imports - by 46.5% (against  a significant growth in both exports and imports a year ago,  respectively, by 2.8 times and 2.1 times. Moreover, in April 2025,  compared to April 2024, the volume of foreign trade fell by 50.1% due  to a decrease in both exports by 57.3% and imports by 43.8%, whereas  a year earlier in April 2024, compared to April 2023, foreign trade  turnover showed a significant growth of 2.7 times due to a jump in  both exports and imports by 2.9-2.6 times. (The average settlement  exchange rate of the dram was January-April 2025 - 394.24 drams/$1).