Armenia produces less bread but sells it at a higher price

According to a report by the Eurasian Development Bank, Armenia’s real industrial sector has experienced the largest decline among member countries during the current period. Armenia has the lowest level of real industrial output, with a drop of 9.8%.

To begin with, it is important to understand the current industrial indicators. According to Armenia’s official statistics, industrial output decreased by 9.8% from January to July of this year. A significant contributor to this decline was the 16.1% drop in manufacturing.

So, what is happening with Armenia’s industry, and is there cause for concern?

First and foremost, the current situation is largely due to the expected downturn in manufacturing. Specifically, a roughly 70% drop in non-ferrous metal production stems from the long-known re-export of gold, which has led to a major decline. Meanwhile, other sectors of manufacturing remain unstable, at least for now.

In this context, it is worth noting the 5.5% growth in food production. While it is encouraging to see food production rising, the overall picture remains mixed.

Brandy production has fallen by 32.9%, which is also troubling considering it is a traditionally exported product. Another worrying trend is the combination of stagnant bread production and a 3.5% price increase—less is being produced, yet it’s sold at a higher cost.

Armenia’s industrial sector is facing a dual challenge: an expected decline due to the end of known external factors, and a complex, uneven landscape in real production.