ArmInfo.Armenia's industrial sector successfully emerged from a downturn in the first quarter of 2026, posting 13.4% growth, a sharp reversal from the 18.5% decline recorded during the same period in 2025.
According to the Statistical Committee of the Republic of Armenia, total industrial output reached 748 billion drams (approx. $1.9 billion). In March alone, industrial production volumes decreased by 2% compared to February, totaling 256.5 billion drams ($679.7 million).
The improvement in the annual dynamics of the industrial sector is due to the recovery from recession to growth in both the manufacturing and mining industries. Specifically, the mining sector demonstrated 36.8% growth (compared to a 10.6% decline in the same period in 2025), generating a volume of 163.8 billion drams. In March, the sector grew by 17.7% to 60.9 billion drams.
The manufacturing industry also reversed its year-on-year trend, from a 26% decline to 9.5% growth, generating a volume of 458.4 billion drams. However, in March alone, the manufacturing sector saw a 9.6% decline to 155.8 billion drams. The highest annual growth rates were recorded in the production of machinery and equipment (3-fold), cigarettes (98.7%), computers, electronic, and optical equipment (91.4%), motor vehicles, trailers, and semi-trailers (84.6%), and coke and petroleum products (54.1%).
At the same time, production volumes in the chemical industry declined significantly (2.7-fold), jewelry (65.1%), furniture (62.8%), computers, electronic, and optical equipment (60.8%), basic metals (35.8%), and finished metal products (36%).
The leading manufacturing outputs were food products (128.1 billion drams), basic metals (92.4 billion drams), cigarettes (69.1 billion drams), and beverages (47.4 billion drams). According to statistics, supplies of electricity, gas, steam, and air conditioning increased by 7% year-on-year in the first quarter of 2026 (compared to 9.8% growth the year before), reaching 118.2 billion drams. This represents a 6% increase over the month, reaching 37.1 billion drams. Moreover, electricity generation, transmission, and distribution increased by 6.3% year-on-year, while gas production and distribution of gaseous fuels through gas supply systems increased by 9.3%.
Revenues from water supply, waste treatment and processing, and recycling accelerated year-on-year during the reporting period, growing from 1.5% to 4.1%, reaching 7.5 billion drams. This segment also grew by 4.2% over the month, reaching 2.5 billion drams. This accelerated year-on-year growth was driven by an 8.5% increase in wastewater collection and treatment. The average exchange rate of the AMD in the first quarter of 2026 was AMD 378.30/$1, and AMD 377.36 drams/$1 in March
