In the first half of 2026, Armenia’s economic activity showed a confident growth of about 8 percent, relying on the construction and service sectors. However, parallel to the internal vitality, the republic has faced a sharp decline in export volumes, which leads to the transformation of the geography of foreign trade.

According to the operational data of the Statistical Committee, the indicator of economic activity in January-June of the current year increased by 7.9% compared to the same period of the previous year. The main driver of this growth continues to be the construction sector, which recorded an impressive 24.5% growth. The volume of industrial output also maintains positive dynamics, increasing by 10.8% in the first six months, while the volume of electricity production also increased steadily by 7.7%.

The services sector (excluding trade) was another driver of the economy, recording 11% growth. At the same time, the trade turnover increased very slightly, less than one percent, and even registered a slight decline in June. Against the background of the general rise, agriculture has created a real contrast. the volume of gross agrarian product decreased significantly by 11.9% in six months. The inflation background in the country remains moderate, although the consumer price index increased by 4.6% on a half-yearly basis.

Despite the high domestic economic activity, the country’s foreign trade balance is undergoing a transformation. The total volume of foreign trade decreased by 0.1% in the first half of the year, and the decline accelerated to 3.3% in June. This image was formed as a result of opposing trends. if the import is steadily growing (4% in the first half of the year), then the export volume has been sharply reduced by 6.7%, and only in June the decline reached an unprecedented 20.5%.

Experts attribute the decline in exports mainly to the reduction in trade volumes with the Russian Federation, in particular to the decrease in the rate of re-export of precious stones and metals.

However, official circles emphasize the successful diversification of sales markets. As mentioned by the Minister of Economy of RA Gevorg Papoyan, losses in traditional destinations are offset by unprecedented growth in new markets. exports to China increased by 83.4%, India by 81.3%, and supplies to the European Union increased by 80%.

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