Economic activity in Armenia down by 49.2% in January amid 5.5% year over year growth

ArmInfo. Economic activity in Armenia dropped by 49.2% in January 2016 amid 5.5% year over year growth. To note for comparison that in Jan 2015 compared to Jan 2014 economic activity grew by 1.3% dropping in January alone by 52.2% and in January 2014 versus January 2013 economic activity increased by 1.8% dropping in January 2014 alone by 52%. In January 2013 economic activity demonstrated higher rates of growth by 9.1% amid January decline by 50.6%.

According to the preliminary data of the National Statistical Service of Armenia, in January economic activity dropped mainly due to decline in construction-by 90.7% (versus 91.4% decline in Jan 2015 and 91.5% decline in Jan 2014), the agricultural output dropped by 77.3% (versus 74% decline in Jan 2015 and 72.6% decline in Jan 2014), trade dropped by 58.6% (versus 64.2% decline in Jan 2015 and 66.3% decline in Jan 2014). Industry and services suffered less decline- by 28.7% and 31.2% respectively (versus 31.8% and 32.1% decline in Jan 2015 and 33.8% and 25.5% decline in Jan 2014 respectively).

According to statistics industry sector leads in terms of year-over-year growth rates (Jan 2016 versus Jan 2015)-15.7% to 94.4 bln AMD ($ 194.3 mln). Construction and services rank next with similar y-o-y growth by 5.1% to 8.3 bln and 89.3 bln AMD respectively ($17 mln and $ 183 mln respectively). Agricultural sector is on the 3rd place with 1.5% y-o-y growth to 16.01 bln AMD ($ 32.9 mln). Index of industrial production in y-o-y terms totaled 93.7% (versus 106.7% a year before) and in Jan alone-101.8% (versus 99.5% in Jan 2015).  Electricity output grew by 5.2% over year to 682.8 mln KW/h amid 6.9% decline in Jan. In Jan 2015 compared to Jan 2014 sector of services was leading in terms of growth by 3.8%, construction was on the 2nd place by 2.2% and agriculture on the 3rd- by 1.8%, while industry and trade demonstrated 6.3-7.4% over year decline, and electric power output demonstrated more tangible decline by 19.7%.

At the same time, in Jan 2016, the foreign trade turnover of Armenia totaled 117.9bln AMD ($242.4 mln) dropping by 13.8% year-over-year and by 49.2% in Jan alone.  Export demonstrated 5.6% year over year growth and totaled 43.4 bln AMD ($89.2 mln) with a 37.1% fall in Jan, while import dropped by 22.2% year over year and amounted to 74.5bln AMD ($153.2 mln) with a 54.4% fall in Jan. To recall, in Jan 2015 foreign trade turnover in Armenia dropped by y-o-y 30.4% and by 48.2% in Jan alone. Particularly export registered 21.9% y-o-y drop (amid 44.1% fall in Jan alone) and import experienced 33.2% y-o-y decline (amid 49.7% drop in Jan). In Jan 2014 foreign trade turnover in Armenia had 3.3% y-o-y decline and 36.2% drop in Jan, particularly export registered 0.1% y-o-y growth (amid 26.1% drop in Jan) and import-4.3% y-o- y decline (amid 39% drop in Jan). In Jan 2013 foreign trade turnover of Armenia declined by 25.1% and grew by 21.7% y-o-y. Particularly export grew 54.6% y-o-y (amid Jan decline by 17.3%) and import grew 13% y-o-y (amid 27.6% drop in Jan).

In Jan 2016, the average AMD/USD exchange rate was 486.04 AMD/$1, versus 475.73 AMD/$1 in Jan 2015 and 407.35 AMD/$1 in Jan 2014.