Thursday, August 5 2021 17:55

ArmInfo. In Armenia, economic activity in H1 2021 increased by 5% per annum (against a 4.7% decline a year earlier), which is accompanied by an increase in exports and a  rise in imports. In June of this year, by June 2020, economic  activity increased by 8% (against a decline of 12.8% a year earlier),  while in June 2021 alone it accelerated growth to 12% from May 2%  (against a less noticeable acceleration of growth in May 2020 from  13.3 % to 14.8%).

According to the final data of the Statistical Committee of the  Republic of Armenia, the growth of economic activity in January-June  2021 was largely determined by the construction sector - by 10.8% and  the trade sector - by 8%, the agricultural sector - by 6.8%, and to a  lesser extent - by the service sector by 2.7%, the industrial sector  - by 2.1% and the energy complex - by 0.5%. A year earlier, in  January-June 2020, the construction sector, the trade sector and the  service sector were in decline - by 23.4%, 11.1% and 6.4%,  respectively, and only the energy complex, the agricultural sector  and the industrial sector remained in growth by 4.4%, 1.7% and 1.5%,  respectively.

In January-June 2021 compared to the same period in 2019, the  industrial product price index increased by 10%, in June 2021  compared to June 2020 - by 15.5%, and in June 2021 alone - by 3.1%  (against May growth by one%). A year earlier, in similar periods,  almost the same dynamics was recorded, but the indicators were much  lower: in January-June 2020 in comparison with the same period of  2019 the industrial product price index increased by 0.7%, in June  2020 to June 2019 - by 2.6%, and  in May 2020 alone increased by 0.5%  (against a decrease of 0.3% in May).

On a monthly terms (for June 2021), the decisive impetus to the  growth of economic activity was given by the construction sector with  an increase in volume by 21.9% (against growth by 21.6% in June  2020), followed by trade in terms of growth rates - by 7.2 % (against  an increase of 14.3% in June 2020), and the service sector - by 3.9%  (against an increase of 8.2% in June 2020). The industrial sector  worsened the monthly dynamics to 0.9% decline (from 6.3% growth in  June 2020). And the energy complex lingered in recession, with an  acceleration in June 2021 to 8.2% from 3.4% in the same month of  2020.

On a y-o-y terms (June 2021 to June 2020), growth in economic  activity was observed in all industries, except for the energy  complex, which slowed down the decline to 8%. Thus, the service  sector increased its volumes by 12%, the trade sector increased its  turnover by 10.3%, the industrial sector and the construction sector  - by the same 1.3%. A year earlier, in June 2020, by June 2019, there  was a decline in all industries:  construction - 23.3%, services -  15.9%, trade sector - 12.4%, industrial sector - 2.4%, energy complex  - 13.7 %.

According to statistics in January-June 2021, the absolute leadership  is held by the trade sector with a volume of 1.5 trillion drams ($  2.8 billion). The second place is held by the industrial sector -  1.04 trillion drams ($ 1.99 billion), the third place is taken by the  service sector - 861.7 billion drams ($ 1.7 billion). The fourth  place is traditionally occupied by agriculture - 277.99 billion drams  ($ 532.5 million), and the fifth is occupied by the construction  sector - 125.6 billion drams ($ 240.6 million). In January-June 2021,  the volume of electricity generation amounted to 3822 million kWh, of  which  511.7 million kWh in June alone.

At the same time, Armenia's foreign trade turnover in January-June  2021 amounted to 1.9 trillion drams ($ 3.6 billion) with a y-o-y  growth of 13.4%. In its structure, the volume of exports increased on  a y-o-y terms by 23.3% to 719.9 billion drams ($ 1.4 billion), and  imports - by 7.9% to 1.2 trillion drams ($ 2.2 billion).  In June  2021 alone, foreign trade turnover increased by 1.9% due to an  increase in exports by 12.2% with a decline in imports by 4.5%, and  compared to June 2020, an increase in foreign trade turnover by 20.1%  was mainly due an increase in exports by 33%, rather than imports by  12.1%. A year earlier, in January-June 2020, foreign trade turnover  decreased by 10.7% per annum due to a decline in imports by 12.9% and  exports by 6.5%, and the June increase in foreign trade turnover by  13.7% was provoked by an upward trend exports by 14.7% with an  increase in imports by 13.1%, compared to June 2019, the decline in  foreign trade turnover by 10.2% was largely due to a decline in  imports by 15.2%, rather than exports by 0.5%.

The average calculated AMD exchange rate was 513.09 AMD / $ 1 in June  2020, and 522.08 AMD / $ 1 in January-June 2020, against 481.27 AMD /  $ 1 in June 2020 and 483.50 AMD / $ 1 in January- June 2020 To note,  according to the forecast of the World Bank (WB) updated in June, GDP  growth in Armenia in 2021 will amount to 3.4%. In terms of Armenia's  foreign trade, the World Bank predicts an increase in exports and  imports by 8.7% and 8.3% for 2021, respectively. In its May forecast,  the IMF expected GDP growth by 1% in Armenia for 2021. The new  forecast of the Central Bank of Armenia (June) foreshadows GDP growth  in 2021 by 4.6%, exports - by 7.7% and imports - by 6.2%. According  to statistics, Armenia's GDP in 2020 decreased by 7.4% - to 6.2  trillion drams (against an increase of 7.6% - to 6.5 trillion drams  in 2019), with a decline in exports by 3.9% and imports by 17. 7%.