Friday, May 3 2019 14:50

ArmInfo.Armenian Minister of Economic Development and Investments Tigran Khachatryan, on May 3 summing up the activities of the department headed by him, explained the reasons for the decline in the foreign trade turnover of the RA  and stated that at this stage he sees no cause for concern.

So, referring to the data of the RA Statistical Committee, Tigran  Khachatryan reminded that in Armenia, the economic activity in  January-March 2019 compared with January-March 2018 increased by  6.5%. The indicator, according to the minister, is on average  comparable to the activity for the previous 3-year plan with some  deviations, "which have their own justification."

According to him, the industrial sector influenced the formation of a  6.5% growth, having increased by only 2%, which is lower than the  average of the last three years over the same period. This, as  Khachatryan pointed out, is due, at a minimum, to a number of  circumstances: the mining sector "fell" in nominal terms by 20% due  to lower metal prices on international markets than was recorded in  the first quarter of 2018. In particular, the cost of aluminum and  copper decreased by 12-15%.

At the same time, the processed industry has pleased with good growth  rates - by 7.5-8%. "This means that those branches of the Armenian  economy that are not based on raw materials, but imply end  production, are growing quite well," said the head of the Ministry of  Economic Development.

In the Q1, the service sector distinguished itself - an increase of  17.3%, which is an unprecedented figure over the past three years. In  particular, growth was recorded by representatives of the financial  services industry, which, according to the Ministry of Economic  Development, means the growth of the institution of financial  intermediaries in the economy of the republic. Sustained development  of leisure and tourism.

Domestic trade grew by more than 10%, and the construction sector,  10.8%, while the agricultural sector and the power complex showed a  decline of 0.2% and 14%, respectively.

In the meantime, the foreign trade turnover of Armenia in  January-March 2019 amounted to 793.7 billion drams ($ 1,628.8  million) with y-o-y decline of 5%. In its structure, the volume of  exports has undergone y- o-y decline of 8.6% to 264.6 billion drams  ($ 543 million), and imports - by 3.1% to 529.1 billion drams ($  1085.8 million). Tigran Khachatryan recalled that the Armenian  government declared exports as the main engine of growth of the  Armenian economy and the level of representation of local goods in  foreign markets. In this context, as the minister believes, this  dynamic needs clarification. Thus, according to the observations of  the Ministry of Economic Development, the mining sector has the most  "passed" - by 51 million US dollars, of which the export of  concentrates decreased by 20.1 million US dollars. Data situation, he  said, is associated with lower prices and production rates. The  latter is due to seasonality, that is, the planned stops of the  mining companies in the Q1.

In the Q1 of this year, the decline was also recorded in the  direction of electricity exports, which, according to the minister,  is temporary. Some decline was recorded in the production and export  of cigarettes, which, as Khachatryan stated, again, is seasonal. Due  to restrictions on the activities of Russian companies in the US  market, the export of aluminum foil fell by 4 million 400 thousand  dollars. "The issue was resolved and already since March of this year  a certain increase was recorded in comparison with March 2018. We  hope that by the end of the year 22-25% growth will be achieved," he  said.

Thus, as the head of the Ministry of Economic Development concluded,  despite the negative dynamics of foreign trade turnover for the first  quarter, 2019 Armenia will close with growth and will reach the  program indicator of 7-8%. "At this stage, I don't see any real cause  for concern," said Khachatryan.

To recall, a year earlier, in January-March 2018, by January-March  2017, economic activity increased by 10.6%, amid a rise in exports by  34.4% and imports by 39%. At that time, growth was recorded in all  sectors, but to a greater extent in the construction sector - by 23%,  services - by 16.5% and the commercial sector - by 12.9%, against the  background of a modest growth in the industrial sector - by 8.2%,  agricultural sector - by 2.2% and energy complex - by 0.4%.