ArmInfo.Economic activity in Armenia increased by 10.7% in January 2024 compared to January 2023 (versus 10.5% growth a year earlier). In January alone, economic activity decreased by 45.1% (versus a 46.1% decline in January 2023), and the decline was recorded in all areas except the energy complex, according to the preliminary data from the RA Statistical Committee.
According to statistical data, y-o-y growth in January was mainly driven by the industrial sector and trade sector, and less by the construction sector and service sector, while the energy complex showed a decline.
In particular, the industrial sector accelerated y-o-y growth in January from last year's 1.4% to the reported 21%, the trade sector - from 17.7% to 19.3%, against the background of which the service sector slowed down in growth from 25.9% to 4. 4%, which was also observed in the construction sector, where growth slowed from 12.2% to 9.5%. The energy complex remained in decline, with y-o-y rates accelerating from 1.5 to 6.4%.
In January 2023 alone, the most significant decline was recorded in the construction sector - by 86.1%, followed by the trade sector - 51.7%, the industrial sector - 43.1%, the service sector - 17.2%, and the energy sector alone recorded a 2% a growth. A year earlier, in January 2023, all of the listed sectors, including the energy complex, were in decline: the construction sector - 85.9%, the trade sector - 44.9%, the industrial sector - 41.9%, the service sector - 17.7%, energy complex - 3.8%.
The price index of industrial products increased by 2.8% per annum in January 2024, 0.3% decline in January alone. A year earlier, in January 2023, an increase in the price index of industrial products was recorded by 1.6% per annum, with an increase of 3% in January alone.
Inflation in Armenia's consumer market in January 2024 was 1.2%, with y-o-y deflation at 0.9%, while a year earlier both the a y-o-y and monthly indicators were inflationary - 8.1% and 1.4%, respectively. In January 2024, the leader in absolute value is the trade sector, with a volume of 340.8 billion drams ($841.5 million). The second place is occupied by the service sector - 236.95 billion drams ($585.1 million), the industrial sector ranks 3rd with a volume of 206.3 billion ($509.3 million), and due to the lack of data from the agricultural sector which traditionally occupies the 4th place, the construction sector took the 4th place with a volume of 17.6 billion drams ( $43.4 million). The volume of electricity generation amounted to 815.7 million kWh in January 2024.
Against this background, Armenia's foreign trade turnover in January 2024 amounted to 868.8 billion drams ($2.1 billion) with a slowdown in y-o-y growth from 93.8% to 78.8%. This was the result of a slowdown in import growth rates from 72.5% to 61.4%, with a slight slowdown in the already high export growth - from 2.3-fold to 2.1-fold, the absolute value of which amounted to 490.6 billion drams ($1.2 billion) and 378.2 billion drams ($934.1 million), respectively.
In January 2024 alone, foreign trade turnover decreased by 24.1% due to a decline in imports by 11.2% and exports by 36.1%, against last year's January decline of 18.3%, 28.2% and 1.1%, respectively. The average settlement exchange rate of the dram was 404.96 AMD/$1 in January 2024, against 395.89 AMD/$1 in January 2023.
