Monday, June 26 2023 13:46

ArmInfo. A 12.5% increase in economic activity was recorded in Armenia this January-May as compared with last January-May, with high growth in exports and imports.  A 13.7% increase in economic activity was recorded this May against last May, with a 7.7% increase this May alone (against a 6.1% growth last May and a 3.4% growth this April.

This January-May, the increase in economic activity was due to trade (24.5%), services sector (19.9%) and construction (16.7%), and industry (3%). The energy sector recorded a 3.1% decline. In January-May 2022, the highest growth was recorded in the services sector (24.9%), energy sector (13.1%), construction (11.4%), trade (8.9%), industry (2.7%). 

This May against last May, all the sectors except for the energy sector recorded growth: trade (28.6% against 12.4% the previous year), construction (18.4%), services sector (12.3% against the previous 30.2%), industry (5.3% against 2%). The energy sector recorded a decline (2%).

This May, the construction sector recorded a 19.7% growth (against 21% last May), followed by industry (9.9% against 3.2% last May), trade (9.6% against 9.8% last May), services sector (1.1% against 6.3% last May). The energy sector recorded a 5.1% decline against a 10.9% decline.

This January-May, the index of prices for industrial products showed a 1.6% year-on-year decline, with a 3.6% decline this May as against last May. Last May alone, the index of prices for industrial products showed a 3.5% decline. Last January-May saw a 9.6% rise in the index of prices for industrial products against January-May 2021. Last May saw a 5% rise in the index of prices for industrial products against May 2021. Last May alone saw a 3.1% decrease.

This January-May, the index of prices for consumer products showed a 5.2% rise as compared with last January-May, with a 1.3% rise this May against last May. This May alone it showed a 1.8% decline.  January-May 2022 saw 7.7% inflation, with 9% in May alone and 0.1% monthly inflation.

This January-May, in absolute terms, the trade sector was the leader - AMD 1,800bln ($4.7bln), followed by the services sector (AMD 1,200bln or $3bln), industrial sector (AMD 952.6bln or $2.4mln), construction (AMD 131.05bln or $335.7mln). This January-May, energy output totaled 3,630.3mln kwh, with 590.9mln kwh in May alone. 

This January-May, Armenia's foreign trade turnover totaled AMD 2,900bln ($7.3bln) - an 86.9% year-on- year growth, with a 93.3% growth in exports (up to AMD 1,05bln or $2.7bln) and an 83.3% growth in imports (up to AMD 1,800bln or $4.6ln). 

This May alone saw a 2.3% growth in Armenia's foreign trade turnover due to a 4.8% growth in imports and a 2.3% decline in exports. This May against last May saw a 50.5% growth in Armenia's foreign trade turnover due to a 52.1% growth in imports and a 47.6% growth in exports.

Last January-May, Armenia's foreign trade turnover recorded a 36.6% growth due to a 27.5% growth in exports and a 42.2% growth in imports. The 23.9% growth last May alone, was due to a 19.9% growth in exports and a 26.3% growth in imports. In May 2021, Armenia's foreign trade turnover showed a 45.5% growth due to a 52.8% growth in imports and a 33.7% growth in exports.

On the other hand, in February 2021 as compared with February 2020, a decline is imports and exports, 13.6% and 2% respectively, caused a 9.5% decline in the foreign trade turnover.  

On June 13, the head of the Central Bank of the Republic of Armenia Martyn Galstyan predicted a certain decrease in exports and imports during the year, explaining that this would occur against the backdrop of tougher requirements for the sale of products of the partner country in the country of delivery, with a ban on re-export.  "We see that international firms of partner countries are increasingly demanding confirmation that their products will be sold under the jurisdiction of the economy of our country and will not be re- exported. From this point of view, I think that as control mechanisms increase, we will see how in volume and quantity of re-export transactions will decrease," Galstyan explained, noting that the volumes of exports and imports in the direction of Armenia will decrease accordingly.

Meanwhile, the Ministry of Economy of the Republic of Armenia does not expect a decrease in exports and imports in 2023 due to a possible reduction in re-export transactions. Thus, on June 16, Deputy Minister of Economy Rafael Gevorgyan stated that a slowdown in growth rates is possible at the end of the year, but a decrease in supplies is not expected. In this regard, Gevorgyan stressed that such forecasts are due to the already available data on exports and imports (for less than 6 months), where there is a noticeable increase in supplies. In addition, the Deputy Minister drew attention to the fact that re-export includes those goods that are allowed to be exported. "Re-export, of course, has a certain impact on export volumes, but this is in no way connected with the sanctions environment," he noted