16.3% Economic Decline Recorded In Armenia In Jan-Jun 2009


Aug 3, 2009

YEREVAN, August 3. /ARKA/. A 16.3% compression was recorded in Armenia
in January-June this year as compared with the same period of the
year before.

The country’s National Statistical Service reports that the Gross
Domestic product (GDP) totaled 1,119.4 billion drams in current
prices in the reporting period; GDP deflator was 102.1% as compared
with January-June 2008.

According to the statistics, 15.3% reduction in added value in the
period (against 7.5% increase in January-June 2008) brought the GDP
down by 13.3pct. 22.3% fall in tax proceeds subsidies exclusive (as
compared with 31.1% rise in January-June 2008) caused the GDP fall
by 3pct (as compared to a 3.6 pct upward effect in January-June 2008).

In the period, 51.9% decline in construction reduced the GDP by 11.9pct
(against 3.4pct increase in January-June 2008). 11.2% compression in
industry (including energy sector) had a 1.9pct reducing effect on
against 0.1pct increasing effect recorded in January-June 2008.

2.4% decline in agriculture, forestry and fishing held the economic
growth back by 0.2pct against 0.8pct upward effect in January-June

3.8% rise in financial sector and real estate transactions raised
the GDP by 0.3pct against 1.4pct in January-June 2008. The share
of added value was 87.4% in the GDP in the period against 86.3%
in January-June 2008.

The share of industrial production (including energy sector) was 15.7%
against 17% in January- June last year. The share of agriculture,
forestry and fishing was 10%, that of construction – 14.3%. The share
of trade, transport and communication provided 22.5% and that of the
services sector on the whole was 50.6%.

Taxes, the subsidies exclusive, constituted 12.6% of the GDP. GDP
per capita was 345,548 drams or $993 (745 euros) by the end of
January-June 2009.

10.2% economic growth was recorded in Armenia in January-June 2008.

Under the state budget, a 9.2% GDP growth was expected in Armenia
in 2009. ($1=369.98drams)