Armenia’s Economy Grows as Foreign Trade Contracts

YEREVAN — Armenia’s economy continued to grow during the first half of 2026, although certain sectors recorded declines.

According to data from the Statistical Committee, the country’s economic activity index increased by 7.9 percent in January-June compared with the same period last year. In June alone, economic activity grew by 7.7 percent compared with June 2025.

Construction remained one of the main drivers of economic growth. The sector expanded by 24.5 percent during the first half of the year and by 25.4 percent in June.

Industrial output increased by 10.8 percent during the first six months of the year, while growth in June stood at 4 percent compared with the same month last year.

The services sector, excluding trade, also recorded positive results. Services grew by 11 percent in January-June and by 19.7 percent in June.

Meanwhile, trade turnover increased by only 0.9 percent during the first half of the year. In June, it declined slightly by 0.1 percent compared with June 2025.

In contrast with the generally positive performance of other sectors, gross agricultural output declined by 11.9 percent during the first half of the year.

Electricity production increased at a consistent rate, rising by 7.7 percent both during the first half of the year and in June alone.

Regarding inflation, the consumer price index increased by 4.6 percent in January-June compared with the same period last year. In June, consumer prices were 5.1 percent higher year over year.

Despite the growth in overall economic activity, statistical data indicate a contraction in Armenia’s total foreign trade.

Foreign trade turnover declined by 0.1 percent during the first half of the year, while a sharper decrease of 3.3 percent was recorded in June.

The decline reflected opposing trends in imports and exports. Imports increased by 8.6 percent in June and by 4 percent during the first half of the year, while exports fell significantly.

Exports from Armenia declined by 6.7 percent in January-June, while the decrease in June alone reached 20.5 percent.

The continued decline in foreign trade, particularly exports, was largely attributed to reduced trade volumes with Russia. According to experts, the decrease was primarily linked to a slowdown in the previous rate of re-exporting precious stones and metals from Russia through Armenia.

However, official sources reported growth in exports to several other markets.

“Compared with the same period last year, Armenia’s exports in January-June 2026 increased by 83.4 percent to China, 81.3 percent to India and 80 percent to the European Union,” Armenian Economy Minister Gevorg Papoyan wrote on Facebook.