Wednesday, September 9 2020 17:52

ArmInfo.In Armenia, the service sector in January-July 2020 reduced volumes by 9.3% per annum - to 968.7 billion drams ($ 2 billion), against 15.2% growth a year  earlier. According to the data of the RA Statistical Committee, in  July the volume of provided services increased slightly - by 0.9%,  amounting to 139.7 billion drams ($ 288.4 million).

In January-July, only the financial sector and the information /  communications sector managed to increase the volume of services - by  10.7% and 6.5%, respectively (against growth by 16.3% and 4.7% a year  earlier). In other areas, the dynamics went into negative territory,  and the most significant decline was registered in the sector of  catering and accommodation - by 46.7% (against an increase of 34% a  year earlier). Further in terms of decline rates follow:  administrative and auxiliary activities - from 11.7% growth to 39.1%  decline, the transport sector - from 5.9% growth to 30.2% decline,  education - from 7.1% growth to 16.5% decline, real estate from 4.7%  growth to 11.8% decline, professional, scientific and technical  activities - from 4% growth to 11.1% decline, healthcare - from 15.6%  growth to 7.5% decline, culture - from 27.3% growth to 3.1% decline.

According to the statistics, the financial sector is in the lead in  terms of the volume of services provided - 267.6 billion drams (27.6%  of the total), with the lion's share accounted for by banks. The  second place in terms of the volume of services is occupied by the  sectores of culture, entertainment and recreation - 217.3 billion  drams (22.4% of the total). The third place is occupied by the sector  of information and communication - 159.6 billion drams (16.5%), with  the dominance of the share of the telecommunication segment. The  fourth place is taken by the transport sector - 89.6 billion drams  (9.3%). And the five leaders in terms of the volume of services  provided are closed by the catering and tourism sector - 52 billion  drams (5.4%).

To note, in Armenia, due to COVID-19, a State of Emergency was  introduced from March 16, which was extended monthly and will be  lifted from September 12, while maintaining restrictive security  measures. As part of the quarantine, a temporary ban was imposed on  many types of economic activity (including restaurants, cafes, bars,  casinos, hotels, canteens, shopping facilities and industries not  related to food and medical products). The ban was partially lifted  in the second half of April, then from May 4 the list of permitted  types of economic activity was further expanded in order to ensure  the vital activity of the economy, and from May 18 the ban was lifted  almost completely. But there was no economic recovery. In particular,  economic activity, after an increase in February by 9.2%, turned out  to be in stagnation in March, and in April it sank by 13.5%, after  which in May, in connection with the complete lifting of the  temporary ban on activities, it went into growth by 13.3%,  accelerating the pace in June to 14.8%, but in July there was a  noticeable slowdown to 9.7% (and in January-July there was a decline  of 5.7% y-o-y).  Moreover, the service sector sank from the February  3.5% growth in March by 5.3%, deepening the decline in April to  11.2%, but already in May, an attempt to enter the growth, first by  0.8%, was seen with acceleration of rates in June to 8.2%, and again  a return in July to 0.9%, while the y-o-y dynamics of these periods  is negative.