Wednesday, January 31 2018 14:48
Karine Melikyan

Economic activity in Armenia increased by 7,7% annually in 2017

Economic activity in Armenia increased by 7,7% annually in 2017

ArmInfo. Growth of economic  activity in  Armenia during the period of  January-December 2017  accelerated to 7.7% per annum, versus the slowdown  to 0.5%  during  2016 from 3.1% of 2015.

Drivers the  trade, services and the industrial sector. By  preliminary data of the National Statistical Service of Armenia, only  in December 2017 there was an increase of 21.8% with an annual growth  of 12.6%, while a year earlier the December growth was more modest -  17.9% with negative annual dynamics of  0.1%.

The growth of economic activity in January-December 2017 is supported  by the services sector - by 14.4% per annum, trade - by 14% and the  industrial sector - by 12.6%, against growth of 7.1%, 0.1% and 6.7%  %, respectively, a year earlier. A relatively modest growth was also  ensured by the energy complex and the construction sector - 6.1% and  2.2%, which recorded a decline of 6.2% and 10.8% a year earlier.  Against this background, the agricultural sector, delayed in the  recession, only slowed down to 3% from 5.2% in 2016, The industrial  production price index increased by 3.9% in January- December 2017,  by 3.9% in the same period of the previous year, by 3.2% in December  2017, and by 0.8% only in December 2018, against 1, 5%, 7% and 0.7%  in 2016.  On a monthly basis (in December 2017), all sectors showed  growth: construction sector - 83.4%, trade - 35.1%, energy complex -  32.2%, agricultural sector - 11.1%, industrial sector - 10.2%, sphere  services - 10.1%. A year earlier, in December 2016, only the  agricultural sector was in decline - 11.4%, while other sectors  provided growth:  construction sector - 77.6%, trade - 46.4%, energy  complex - 12.4%, sphere of services - 10.9% and industry - 6.4%.

Annual growth (December 2017 to December 2016) also recorded growth  in all sectors:  energy complex - 17.8%, service sector and  industrial sector - 15.6%, trade - 12.7%, construction - 10.4% and  agricultural sector - 3.3%. A year earlier, in December 2016, by  December 2015, the construction sector, energy complex and services  sector were in decline - 10,1%, 4,5% and 0,6% respectively, while the  rest spheres were distinguished by growth: agro sector - 6,5%,  industry - 5,9% and trade - 4,4%.

According to statistical data in January-December 2017, in absolute  terms leadership is held by the trade sector with a volume of 2.6  trillion. AMD ($ 5.4 billion). The industrial sector is on the second  place with 1.7 trillion ($ 3.4 billion), the third - the service  sector - 1.5 trillion drams ($ 3.01 billion), the fourth - the  agricultural sector - 906.8 billion drams ($ 1.9 billion), and the  fifth - the construction sector - 415.9 billion drams ($ 861.5  million). The volume of electricity generation in January-December  2017 amounted to 7762.9 million kWh, of which 825.5 million kWh. -  Only in December.

At the same time, Armenia's foreign trade turnover in  January-December 2017 was 3100.4 billion drams ($ 6,425.6 million)  with an annual growth of 26.9%. In its structure, the volume of  exports has undergone annual growth of 25.2% to 1082.1 billion drams  ($ 2242.9 million), and imports - annual growth of 27.8% to 2018.3  billion drams ($ 4,182.7 million). A year earlier, in  January-December 2016, foreign trade turnover increased by 7.4% due  to growth in exports by 20% and imports by 1.6%. By way of  comparison, we note that in January-December 2015 the foreign trade  turnover decreased by 20.6% per annum due to a 26.5% drop in imports  with a 3.9% decline in exports.

The average calculated exchange rate for dram totaled 483.18 dr / $  in December 2017, and 482.72 dr / $ 1 in January-December, compared  to 482.84 dr / $ 1 in December 2016 and 480.49 dr / $ 1 in January-  December 2016, 482.93 dr / $ 1 - in December 2015 and 477.92 dr / $ 1  - in January-December 2015.  According to the World Bank's forecast  for 2017, which was updated in January 2018, the GDP growth of  Armenia was indicated at 3.7%, with acceleration in 2018 to 3.8% and  in 2019 to 4%. The Central Bank of Armenia previously forecast GDP  growth by 4.4-4.9% (an average of 4.6%) in 2017, in early January  2018 revised the GDP growth estimate for 2017 in the direction of  acceleration to 6.4%, and the Government of their expectations for  2017 on GDP growth estimated at 5.5-6%. The state budget of the  Republic of Armenia for 2017 laid the GDP growth by 3.2%, and by 2018  - 4.5%.

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