In Q1 2025, Armenia`s economic growth slowed  to 6.3%, with 45%  decrease in foreign trade

ArmInfo.  In Armenia, the economic growth rate in the first half of 2025 decreased to 6.3% annually (down from 10.4% in the same period of 2024). Additionally, the industrial sector, which was a key driver of growth the previous year, is now slowing down economic growth with a  double-digit  decline. According to preliminary data from the RA Statistical  Committee, this is coupled with a negative shift in foreign trade  trend, transitioning from several-fold growth to a significant  decline. 

According to statistics, the significant slowdown in economic growth  in the first half of 2025 was largely due to a decline in the  industrial sector's annual dynamics  from 18.2% growth to a 12.1%  decline, as well as a notable deceleration in trade sector growth  from 22.9% to 3.9%. The energy sector also experienced a decrease in  growth rate from 5% to a stagnant 0.8%.  The service sector saw an  acceleration in annual growth from 4.4% to 9.8%, while  the  construction sector also experienced an increase from 15.7% to 18.5%.  The agricultural sector showed an increase in annual growth from 4%  to 7.3%. According to statistics for the first half of 2025, in  absolute terms, the trade sector led with a volume of 2.95 trillion  drams ($7.5 billion), followed by the service sector - 1.8 trillion  drams ($4.6 billion), the industrial sector - 1.3 trillion drams  ($3.2 billion),  the agricultural sector - 316.1 billion drams  ($807.8 million), and the construction sector - 224.9 billion drams  ($574.7 million). Power generation in the first half of 2025 amounted  to 4325.6 million kWh, with 616.2 million kWh generated in June  alone. 

In June 2025,  economic activity accelerated in growth compared to  June 2024, with growth reaching  8.6% (up from 7.1% a year earlier).  In June alone, growth increased from 5.4% to 8.8% (compared to a more  pronounced acceleration of growth in June 2024 from 2% to 11.2%). In  June 2025, the growth of the industrial sector slowed down from 2.9%  to 2.5%, while a year earlier it experienced  a deeper decline from  0.2% to 2.4%. In June, growth in the construction sector slowed from  24.8% to 21.1%, and in the service sector - from 1.8% to 1.3%. There  was an improvement in  the trade sector  - from a 0.9% decline to  6.2% growth, and in the energy complex - from an 11.4% decline to  6.3% growth. In annual terms (June 2025 to June 2024), all sectors,  except for the industrial sector, showed growth, with the  construction sector leading- 22.6%, followed by the services sector -  8.2%, the trade sector - 2.8%, and the energy complex - 1.7%. In June  2024 to June 2023, all sectors, except  the energy complex which  declined by  5.3%, experienced growth: the construction sector - by  18%, the trade sector - by 16.2%, the services sector - by 7.8%, and  the industrial sector - by 1.4%. 

In the first half of 2025, Armenia's foreign trade turnover amounted  to 3.8 trillion drams ($9.7 billion), a decline of 45% annually  (compared to a 2-fold increase a year ago). This decrease is due to a  significant drop in both exports and imports - by 52.8% and 38.6%  annually, respectively. In contrast, the previous year saw   significant growth in both indicators - 2.3 times (exports) and 86.5%  (imports). As a result, the absolute value of exports for the first  half of 2025 amounted to 1.5 trillion drams ($3.8 billion), and  imports - 2.3 trillion drams ($5.9 billion). In June 2025, compared  to June 2024, foreign trade turnover fell by 16.6% due to a decrease  in exports by 15.9% and imports by 17.1%, while a year earlier in  June 2024, compared to June 2023, foreign trade turnover showed an  increase of 34.6% due to a significant increase in exports by 59.9%  and a moderate increase in imports by 20.6%. 

Note that since 2023, there has been a change in the methodology for  calculating the volumes of generated electricity in statistical  report. Particularly, the volumes of electricity generated by  autonomous producers are now being taken into account. Data for the  agricultural sector is published only in quarterly and annual  statistical reports. (The average  exchange rate of the dram in  January-June 2025 was AMD 391.31 /$1).