Armenia`s industrial sector in the first quarter of 2021 reduced  production volumes by 3.9% per annum

ArmInfo. Industrial sector of Armenia in the first quarter of 2021 reduced production by 3.9% per annum (against 8.7% growth a year earlier), amounting to 470.4  billion drams ($ 897.5 million). But in March alone, the volume  increased by 9.1% - to 175.2 billion drams ($ 332.1 million).

This is evidenced by the data of the RA Statistical Committee.  The  deterioration of dynamics in the industrial sector is due to the  continuing (since March 2020) decline in the dominant manufacturing  industry, while the mining industry continues to increase its  volumes.  In particular, in the first quarter of 2021 versus the same  period in 2020 the mining industry and open pit development slowed  down the annual growth - from 26.9% to 8.1% to 129.5 billion drams.  And in March alone, the mining industry provided growth of 14.8% - up  to 47.8 billion drams.  The volume of the manufacturing industry in  the first quarter of 2021 decreased in y-o-y terms  by 11.6% (against  growth by 3.8% a year earlier) - to 258.1 billion drams, with an  increase of 8.6% in March alone - to 99.1 billion drams.

Moreover, in the manufacturing industry in the first quarter of 2021,  the production of jewelry declined by 78.6%, printing products - by  60.1%, finished metal products - by 52.1%, the chemical industry - by  33%, cigarettes - by 28 , 4%, basic metals - by 12.7%, furniture - by  9.7%, drinks - by 4% .

Significant growth was recorded in the production of electrical  equipment - 3.2-fold, computers, electronic and optical equipment -  by 89.9%, machinery and equipment - by 74.2%, textiles - by 73.2%,  clothing - by 40,1%. A more modest growth was recorded in the  production of pharmaceutical products - by 19.3%, rubber and plastic  products - by 16.4%, other non-metallic products - by 15.5%, and the  volume of food production grew very miserably- by 0.1%.

In the manufacturing sector, the leaders in terms of production are  food (94.2 billion drams), basic metals (37.9 billion), beverages  (35.6 billion drams) and cigarettes (27.5 billion).  According to  statistics, the supply of electricity, gas, steam and conditioned air  in general increased in the first quarter of 2021 by 11.2% against  the same period of 2020 (against 11.7% growth a year earlier) - up to  77.8 billion drams, against the background of monthly growth by 1.4%  - up to 26.6 billion drams.  Moreover, the generation, transmission  and distribution of electricity during the reporting period increased  by 12.2% per annum, amounting to 61 billion drams, while gas  production, distribution of gaseous fuel through gas supply systems  increased by 7.3%, providing a volume of 16.8 billion drams. Revenues  from water supply, waste treatment and processing and production of  secondary raw materials for the reporting period increased by 0.9% -  up to 5 billion drams.

Note that in 2020, the industrial sector of Armenia showed a decline  of 0.9%, amounting to 2.070 trillion drams ($ 4.2 billion), against  9% growth in 2019. The change from the upward dynamics to the  downward one was triggered mainly by the slowdown in the growth of  the mining sector and the recession in the manufacturing industry  that has been continuing since March. In particular, the growth in  the mining industry by 11.6% to 403.1 billion drams was accompanied  by a decline in the processing industry by 3.9% to 1.4 trillion  drams.