Armenia’s economy continued to grow in the first eight months of 2025, although its structure reflects mixed and sometimes contradictory trends. According to data from the Statistical Committee, overall economic activity in January–August increased by 7.1% compared to the same period last year. In August, activity grew by 5.4% compared to July and by 7.5% year-on-year.
The construction sector remains the main driver of growth, expanding by 20.4% over the first eight months and reaching 374.85 billion drams. In August alone, construction volumes increased by 19.4% month-on-month and by 21.1% compared to August 2024.
The services sector also shows steady growth: over eight months it expanded by 10.2%, reaching a total volume of 2.596 trillion drams. In August, services grew by 3.8% compared to the previous month and by 6.7% year-on-year.
Trade turnover grew more moderately, rising by 3.9% in January–August to 4.14 trillion drams. In August, the growth was 1.2% compared to July and 1.7% compared to the same month last year.
Against this backdrop, industry, a key pillar of the economy, shows an opposite trend. Industrial output in January–August amounted to 1.77 trillion drams, which is 7.8% lower than in the same period of 2024. The sector showed some short-term improvement in August — up 10.7% compared to July and 5.8% year-on-year — but this has not been enough to offset the overall decline.
The energy sector, closely linked to industrial production, is demonstrating more positive dynamics. Electricity generation in the first eight months increased by 3.6%, reaching 5.95 billion kWh. In August, output rose by 10.6% month-on-month and by 13% compared to the previous year.
Inflation remains within moderate limits. The consumer price index for January–August rose by 3.2% compared to the previous year. In August, it increased by 0.2% from the previous month and by 3.6% year-on-year. The industrial producer price index rose by 2.8%, but declined by 0.6% in August compared to July, remaining 5.1% higher than a year earlier.
The Statistical Committee did not provide data on gross agricultural output or average nominal wages for the reporting period, which limits the ability to fully assess the economic picture.
Overall, the data indicates continued economic growth in Armenia, but the structure of this growth remains unstable. The main drivers are construction, services, and trade, while industry — traditionally a system-forming sector — is in decline. This points to persistent structural contradictions and underscores the need for targeted policies to support core sectors, without which the sustainability of growth could be at risk.