Monday, August 5 2024 14:44

ArmInfo. In Armenia, economic  activity growth in the first half of 2024 slowed to 10.4% per annum  (from 11.4% in the same period of 2023). But unlike last year, the  industrial sector has become a key growth driver. According to the  final data of the RA Statistical Committee, this is accompanied by  continued high growth rates of exports and imports.

Judging by the information disclosed in the final statistical report,  the high growth of industrial production no longer comes from the  jewelry industry, which previously demonstrated growth by several  times, now showing too restrained moderate growth. In particular, the  high growth of the industrial sector is now supported to a greater  extent by the production of basic metals, electrical equipment, and  to a slightly lesser extent by the production of finished metal  products, furniture, woodworking industry, and metallurgy.  However,  it is worth noting that in the reporting period, the greatest growth  (with a small volume) is recorded in the production of coke and  liquefied petroleum products. Nevertheless, it is the production of  basic metals that has secured its leadership in the industrial sector  in terms of volume, also maintaining high growth rates, whereas  previously the first position was held by the food industry, for  which the protracted decline cost the loss of primacy.

According to statistics, the growth of economic activity in the first  half of 2024 was largely due to the trade sector - with a slight  slowdown in growth rates from 23.6% to 22.9%, the industrial sector -  with a sharp acceleration of annual growth rates from 1% to 18.2%,  and the construction sector - with a slowdown in annual growth rates  from 17% to 15.7%. A strong slowdown in growth during this period was  recorded in the services sector - from 16.8% to 4.4%. Against this  background, the annual dynamics of the energy complex significantly  improved - with an exit from a 2.7% decline to 2.2% growth. The  agricultural sector managed not only to maintain growth, but also to  accelerate annual growth rates from 2% to 4%. According to statistics  in the first half of 2024, in absolute terms, the trade sector holds  the lead with a volume of over 2.8 trillion. AMD ($6.95 billion). The  second place in terms of volume is occupied by the service sector -  1.6 trillion AMD ($3.9 billion), the third place is occupied by the  industrial sector - 1.4 trillion ($3.6 billion), the fourth place is  occupied by the agricultural sector - 285.8 billion ($721.6 million),  and the fifth place is occupied by the construction sector - 202.02  billion AMD ($510 million). The volume of electricity generation in  the first half of 2024 amounted to 4542.8 million kWh, of which 666  million kWh in June alone. It is worth noting that the volumes of the  industrial sector have almost equaled the volumes of the service  sector, whereas previously the gap was quite noticeable. This was the  result of a strong acceleration of growth in the industrial sector  and a sharp slowdown in the growth of the service sector.

Against this background, Armenia's foreign trade turnover in the  first half of 2024 exceeded 7.3 trillion drams (over $18.4 billion),  with an acceleration of the already high annual growth rate to 2  times (from 72.9% in the same period of 2023). This is due to the  acceleration of the high annual growth rates of both exports - from  72.8% to 2.3 times, and imports - from 73% to 86.5%, the absolute  value of which amounted to 3.1 trillion and 4.2 trillion drams ($7.9  billion and $10.5 billion), respectively. In June 2024, compared to  June 2023, foreign trade turnover accelerated in growth from 21% to  34.6%, which was due to a sharp acceleration in export growth from  2.5% to 59.9% while import growth slowed down from 33.8% to 20.6%. It  should be noted that since 2023, the methodology for calculating the  volume of generated electricity has changed in statistical reports,  in particular, the volume of electricity generated by autonomous  producers has also begun to be taken into account. For the  agricultural sector, data are published only in quarterly and annual  statistical reports. (The average calculated exchange rate of the  dram in January-June 2024 was 396.09 drams / $ 1).