Manufacturing Industry in Armenia: Analysis of the Growth Factors

Economic development largely depends on the growth of specific sectors of the economy. Moreover, when a country has limited resources, optimal investment in a particular economic sector is crucial. Armenia, despite having limited resources, is, in a sense, a resource-based economy in its export structure, exporting precious stones and metals in their raw form. However, by developing its manufacturing industry, we believe the country will generate greater value added and, at the same time, expand sectors beyond mining. This paper aims to analyse and evaluate Armenia’s manufacturing industry, focusing on its structure, development potential, and key issues. A review of key indicators of Armenia’s manufacturing industry served as the methodological basis for the study. The analysis is based on a review of statistical data characterising the growth dynamics of the manufacturing industry, its sectoral structure, and its degree of diversification. The study’s results show that the industrial structure is highly concentrated, with low levels of technological development. The study’s main conclusion is the need to shift monetary policy to stimulate the export potential of manufactured goods in global commodity markets