Reduction in Armenia`s industry, index of prices for industrial  products shows slower rise 

ArmInfo. In Armenia, the industrial price index decreased in January- May 2025 compared to the same period in 2024 from 102.2% to 102.1%. This was observed against the background of a deterioration in the annual dynamics of the industrial sector from 22% growth to 14.1% decline, with a volume of 1.03 trillion drams ($2.6 billion). This is evidenced by the preliminary data of the RA Statistics Committee. At the same time, in  May 2025, compared to May 2024, the industrial price index decreased much more noticeably - from 108% to 102.2%. During this period under review, the dynamics of the industrial sector also worsened to a 5.9% decline (from 6.9% growth a year ago). It is noteworthy that inflation was recorded in the consumer market of Armenia during these periods under review. 

In particular, in January-May 2025, compared to the same period of 2024, inflation was 3%, and in May 2025 to May 2024, inflation was 4.3%, against a deflationary 0.8% and an inflationary 0.3%, respectively, in the same periods a year ago. Moreover, inflation in the consumer market was mainly supported by an increase in food prices: in January-May 2025 compared to the same period of 2024 - by 5%, and in May 2025 to May 2024 - by 7.2%, whereas a year earlier, during these same periods, a decline in food prices was recorded - by  3.9% and 1.1%, respectively. At the same time, services continue to rise in price: by 2.8% in January-May 2025 compared to the same period in 2024 and by 3.1% in May 2025 compared to May 2024, against similar rates a year ago - 2.8% and 2.3%, respectively.

It is worth noting that this is accompanied by a slowdown in the  growth of economic activity in Armenia in January-May 2025 from 11.2% to 5.7% per annum, and in May 2025 to May 2024 - an acceleration of growth from 5.2% to 10.4%. At the same time, there is a deterioration in the annual dynamics of foreign trade turnover in January-May 2025 to a decline of 49% from a growth of 2.2 times in the same period of 2024, as a result of a decline in both exports - by 57.4%, and imports - by 42% (against a significant growth of both exports and imports a year ago, respectively, by 2.5 times and 99.6%). Moreover,  in May 2025, compared to May 2024, the volume of foreign trade fell by 28.8% due to a reduction in exports by 39.3% and imports by 20.4%, while a year earlier in May 2024, compared to May 2023, foreign trade turnover showed growth of 32.2%, largely due to an increase in exports by 57.4%, rather than imports by 17.2%.  (The average settlement exchange rate of the dram in January-May 2025 was 392.72 drams/$1).