In Jan-May 2018 growth of industrial sector of Armenia slackened to 3,3% versus 14,4% growth in previous year

ArmInfo. In Jan-May 2018, the volume of Armenia's industrial output increased by 3.3% year-over-year (compared to 14.4% growth a year earlier), amounting to 658.2billion AMD ($ 1.4 billion).  According to the National Statistical Service of Armenia in May alone the industry  showed a growth of 13.3%, while in year-over-year terms (compared to May 2017) the sector demonstrated 3.1% decline to 136.1 billion ($ 281.2 million).

The slowdown in the annual growth rate of the industrial sector was due to decrease in the volume of the mining sector amid maintaining growth of the manufacturing industry. In Jan-May 2018, in the mining industry and the development of open pits an annual decline of 10.4% was recorded (compared to 12.5% growth a year earlier) - to 131.7 billion drams. And in  May alone, the mining industry showed a decline of 3.8% - to 23.5 billion  drams. The volume of manufacturing industry in Jan-May 2018  increased by 9.3% year- over-year (against 20% growth a year  earlier) to 410 billion drams($850.8mln), with a monthly growth of 22.2%(against 18% growth a year earlier) to  92.5 billion drams.

Moreover, in the manufacturing industry during  the reporting period, slowdown was registered only in production of computers, electronic and optical equipment - by 9,8% main  metals - by 2.9% and power equipment by 2,1%. At the same time, a significant growth was recorded in clothes production-89,2%,  the production of machinery and equipment - 82.9%, printing and replicating of recorded media -67,4%, textiles - by 63% and other metallic ores- 42,1%.  In the processing industry, food products (115,1  billion drams), basic metals (72,1 billion), cigarettes (63,1  billion), beverages (54,2 billion drams) are leading in terms of  production volumes.

According to statistical data, the supply of electricity, gas, steam and air conditioning in January-May  2018 compared to the same period in 2017 did not changed (against 1,6% growth a year earlier)  to 106,3 billion drams, in May alone 2,4% increase to 18 billion drams was registered. Moreover, generation, transmission and  distribution of electricity for the reporting period increased by 4,4% per annum (amid 4,4% monthly growth), while gas production, distribution of gaseous fuels  through gas supply systems decreased by 17,1% (amid 9% decline in May).

In Jan-May 2018 revenues from water supply, waste treatment and processing and receipt of secondary raw materials increased by 0.9% per annum (against 3.9% growth a year earlier) to 10,1 billion drams, amid grew in May by  8% - to 2,1 billion drams. Moreover, the upward annual dynamics  in this segment, was mainly ensured by the collection, processing and  destruction of waste, the receipt of secondary raw materials (an  increase of 4,3%).

To recall, the volume of industrial production in Armenia in 2017 compared to 2016 grew by 12.6% (against growth of 6.7% a year earlier), amounting  to 1.660 trillion drams ($ 3.4 billion). The improvement in the  dynamics was reflected in the acceleration of the growth rate of the  mining sector to 13.9% (from 8.3% a year earlier) and the  manufacturing industry to 15.7% (from 7.7% a year earlier).

The average calculated exchange rate of the dram to dollar in Jan-May 2018 was 481.92dr/$1  in May alone- 484.09/$1 compared to 485.13dr/$1 in Jan-May 2017, and 483.42dr/$1 - in May alone.