Armenia's construction output rises 25%; exports fall 7.9%
Armenia’s construction sector saw its output increase by 25% from January through July compared with the same period last year. The country’s exports fell by 7.9% during the same period. This is according to preliminary data from the Armenian Statistical Committee.
The economic activity index rose by 7.7% over the seven-month period. In July, it was 6.5% higher than in the same month a year earlier and 4.6% higher than in June. At the end of the first half of the year, growth had stood at 7.9%. The pace is thus slowing slightly but remains high. ##Construction and Services Drive Growth Construction output reached 369.2 billion drams, equivalent to approximately 875 million euros at the exchange rate as of September 2. In July alone, it was 26.5% higher than in the same month of the previous year. Industrial production totaled 1,793.1 billion drams, or about 4.2 billion euros, an increase of 9.5%. Services (excluding trade) totaled 2,593.2 billion drams—about 6.1 billion euros—and grew by 13.2%.
The Eurasian Development Bank analyzed the figures in its weekly macroeconomic overview on August 31: “Economic activity in Armenia grew by 7.7% year-over-year from January through July, following 7.9% growth from January through June. Services made the largest contribution at 13.2%; construction and manufacturing also posted high growth rates at 25.0% and 9.5%, respectively.” The bank attributes the surge in services to the IT sector and to industries that rely on strong tourism. It maintained its growth forecast for the full year at 6%.
Domestic trade is not part of the picture. Its turnover reached 3,769.9 billion drams, about 8.9 billion euros, and rose by only 0.8%. In July, it fell by 0.1%. Consumer prices rose by 4.5% from January through July. ##Foreign Trade Tilts Toward Imports Foreign trade turnover reached 11,538.2 million U.S. dollars, an increase of 1.7%. This reflects two opposing trends. Exports fell by 7.9% to 4,035.7 million U.S. dollars. In July, they plummeted by 15.7%. Imports rose by 7.7% to 7,502.5 million U.S. dollars, and in July by as much as 21.5%.
The deficit thus totals approximately 3.5 billion U.S. dollars over seven months. In the second quarter, gross domestic product grew by 6.7%. The national budget projects 5.4% for 2026. The Central Bank of Armenia expects 4.5% or 4.1%, depending on the scenario. The World Bank forecasts 5.3%, the IMF 5.25%, and the ADB and EBRD each 5.5%.
For German exporters, the import side is what matters. Armenia is buying more from abroad, while its own exports are plummeting. Construction and industry are experiencing double-digit growth and require machinery, equipment, and intermediate goods. The 21.5% jump in imports in July illustrates just how rapidly this demand is emerging. This is offset by a payment risk. If export revenues continue to fall at double-digit rates, the country will finance its imports through loans, remittances, and reserves. Suppliers to Armenia should keep payment terms short and monitor the central bank’s foreign exchange reserves.
Sources: Statistical Committee of Armenia (EN/AM), Eurasian Development Bank, Weekly Macro Overview of August 31, 2026 (EN), Central Bank of Armenia (EN).
SK, Frankfurt