Economic activity growth in Armenia slackened to 0.4% in Jan-Oct 2016

ArmInfo. In Jan-Oct 2016, the economic activity growth in Armenia slackened to 0.4% from 3.5% in Jan-Oct 2015. Services and industry remained the driving force of economic activity. In the same period of 2014 the growth of economic activity was much higher-4.2%. According to the data of the Armenian National Statistical Service, in October alone economic activity dropped by 18.7% (down 7.8% versus Oct 2015).

In Jan-Oct 2016, services grew by 7.7% y-o-y, and industry - by 6.5% y-o-y versus 2.8% and 4.6% respectively a year before. In the meantime, trade dropped by 0.1%, agriculture - by 7.3%, power engineering - 6.3%, construction - by 9.8%. In Jan-Oct 2015 trade sector demonstrated negative dynamics-6.4%, while the remaining fields- agriculture, power engineering and construction demonstrated growth-11.6%, 2.2% and 0.1% respectively.

As compared to October 2015, services grew by 4.9%, industry - by 2.4%, and industry - by 0.4%, while agriculture declined by 29.8%,  construction - by 12.2%, and power engineering - by 4%.  In Jan-Oct 2016, the consumer price index rose by 0.5% versus Jan-Oct  2015, while in October 2016 it grew by 5.8% versus Oct 2015, and  dropped by 1.2% versus Sept 2016.

In October 2016 power engineering grew by 0.7% and construction - by 0.5% (versus 6.9% and 4.3% decline in Oct 2015), while agriculture declined by 27.7% (versus 31.8% decline in Oct 2015), industry - by 2.5% (versus 0.4% growth in Oct 2015), trade  - by 2.4% (versus 2.2% decline in Oct 2015), services - by 3% (versus 0.8% growth in Oct 2015).

According to the statistical data in Jan-Oct 2016 trade amounted to 1.8 trillion AMD ($3.7 bln), industry - 1.2 trillion ($2.4 bln), services - 1.03 trillion AMD  ($2.2 bln), agriculture - 757.3 bln AMD ($1.6 bln), construction - 275.6 bln AMD ($573.7 mln), electricity output totaled 5991.4 mln kWh, including 595.3 mln kWh in October alone. 

At the same time, in Jan-Oct 2016 the foreign trade turnover of Armenia totaled 1952.3 bln AMD ($4067 mln), with a 6.1% year-over-year growth. Exports increased by 19.8% to 697.8 bln AMD  ($1453.7 mln), and imports decreased by 0.3% to 1254.5 bln AMD ($2613.3 mln). In Jan-Oct 2015 foreign trade turnover declined by 20.4% due to decline of import by 26.6% amid drop of export by 2.2%. To note for comparison that in Jan-Oct 2014 foreign trade turnover of Armenia grew 3.6% y-o-y with export growing by 2.9% and import by 3.8%.  The average AMD/USD exchange rate made up 475.25 AMD/1USD in October 2016, and 480.45 AMD/1USD in Jan-Oct 2016, versus 472.55 AMD/$1 in October 2015 and 477.19 AMD/$1 in Jan-Oct 2015. In Oct 2014 exchange rate was 409.98 AMD/$1, Jan-Oct 2014- 410.70 AMD/$1.