Monday, February 27 2023 16:27

ArmInfo. Armenia's economic activity increased by 10.5 percent in January 2023 compared to  January 2022 (against 15.4% growth a year earlier), far exceeding the pre- Covid 6.1% growth in the same period in 2019. In January alone,  economic activity decreased by 46.1% (against a 45% decline in January 2022 and a 46.9% decline in January 2019), and the decline  was recorded in all areas.

This is evidenced by the preliminary data of the RA Statistical Committee, according to which the y-o-y growth  in January was provoked to a greater extent by the service sector,  trade and the construction sector, to a lesser extent by the  industrial sector, while the energy complex showed a decline.

According to statistical data, in January, the largest  y-o-y growth,  even in double digits, was recorded in the service sector- 25.9%, the  trade sector - 17.7%, the construction sector - 12.2%, against which  the growth of the industrial sector looked too modest - 1.4% , and  only in the energy sector a decline of 1.5% was recorded . Data for  the agricultural sector have not been published. A year earlier, in  January 2022 by January 2021, growth was shown by all industries: the  service sector - 21.2%, the energy complex - 19.2%, the industrial  sector - 16.6%, the trade sector - 11.5%, the construction sector -  3%. As a comparison, we note that in the pre-Covid similar period  (January 2019 to January 2018), growth was shown only by the  construction sector, the trade sector and the service sector -  respectively 22.1%, 19.3% and 15.6%, while the industrial sector and  the energy complex were in decline by 0.4% and 26.3%, respectively.

In January 2023 alone, the most significant decline was recorded in  the construction sector - by 85.9%, then the trade sector followed in  descending rates - 44.9%, the industrial sector - 41.9%, the service  sector - 17.7%, the energy complex - 3, 8%. A year earlier, in  February 2022, the only growth was observed in the energy complex -  by 7.1%, while other areas showed a decline: the construction sector  - 86.5%, the trade sector - 41.9%, the industrial sector - 37.8%, the  service sector - 16.2%. In the pre-covid 2019, in February, as now, a  decline was recorded in all areas: construction - 87.2%, trade -  48.9%, industrial sector - 28.7%, services - 28.1%, energy complex -  8.8%.

The price index of industrial products increased in January 2023 by  1.6% per annum, with an increase of 3% in January alone. A year  earlier, in January 2022, an increase in the price index of  industrial products by 9% per annum was recorded, with an increase by  0.9% in January alone. And in the pre-Covid 2019, the industrial  price index recorded a decline in January at both y-o-y (2.6%) and  (0.3%) monthly rates.

In January 2023, the trade sector is leading in absolute terms with a  volume of 292.9 billion drams ($739.9 million). The service sector  ranks 2nd - 215.96 billion drams ($545.5 million), the industrial  sector ranks 3rd with a volume of 177.7 billion ($448.8 million), and  due to the lack of data from the agricultural sector traditionally  occupying 4th place, the construction sector ranks 4th with a volume  of 16.03 billion drams ($40.5 million). The volume of electricity  generation in January 2023 amounted to 871.7 million kWh.

Against this background, Armenia's foreign trade turnover in January  2023 amounted to 514.4 billion drams ($1.3 billion) with a y-o-y  growth of 93.8%. This was the result of a 2.3-fold increase in  exports - up to 226.6 billion drams ($572.8 million), with a slightly  restrained increase in imports by 72.5% - up to 287.8 billion drams  ($727.1 million). In January 2023 alone, foreign trade turnover  decreased by 18.3% due to a decline in imports by 28.2% and exports  by 1.1%. 

A year earlier, in January 2022, the y-o-y growth of foreign trade  turnover was 60.4%, due to an increase in exports by 53.2% and  imports by 65%, while in January 2022 alone, a decline in imports by  33.9% and exports by 17.9% led to a reduction in foreign trade  turnover by 28.7%. In pre-Covid 2019, in January, foreign trade  turnover showed a decline both on a y-o-y terms  (7.6%) and on a  monthly terms (28.9%), which was largely due to exports, which  decreased by 15.8% per year and by 30.1% per month, rather than  imports (3.3% per year and 28.4% per month).

The average settlement rate of the dram in January 2023 was 395.89  AMD/$1, compared to 481.99 AMD/$1 in January 2022.