Armenian economy shrank 16% this year - gov`t
Armenia`s economy shrank 16.3% in the first half of
2009, Prime Minister Tigran Sarkisian reported.
Further, Armenia`s Gross Domestic Product (GDP) constituted only $3.2 billion in this period, he said.
According to Sarkisian, agricultural production in the country fell by 4.1% in the past year. Also, the decline in the service sector made up 1.6%. Output by Armenian enterprises went down 11.1% in comparison with January-June 2008.
The biggest slump, however, was in the construction sector. According to official estimates, a 42.4% reduction was posted in construction in the first half of 2009. But independent experts argue that the decline in the construction sector actually exceeds 70%. The situation is expected to further deteriorate in the near future, as the government is unable to find additional resources to inject into the sector to foster a turnaround.
In the background of dropping economic indicators, inflation is rising in Armenia. The country`s statistics body estimated inflationary levels at 3.9% in January-June and 21.9% during the past year.
Also, the unemployment rate has increased 6.5%. Independent experts estimate that over 60% of able-bodied citizens have lost their jobs since the world economic recession began, and the number of the jobless is on the rise. Moreover, the allocations of foreign aid to Armenia have more than halved, exacerbating the economic problems further.
In addition to that, Armenia`s foreign trade turnover dwindled 30% to $1 billion in the first half of 2009. Exports halved, and imports exceeded the volume of exported goods by five times, which implies a five-fold increase in the country`s negative foreign trade balance. Experts believe that the situation is disastrous, warning that the Armenian economy has become dangerously dependent upon imported commodities.
Further, Armenia`s Gross Domestic Product (GDP) constituted only $3.2 billion in this period, he said.
According to Sarkisian, agricultural production in the country fell by 4.1% in the past year. Also, the decline in the service sector made up 1.6%. Output by Armenian enterprises went down 11.1% in comparison with January-June 2008.
The biggest slump, however, was in the construction sector. According to official estimates, a 42.4% reduction was posted in construction in the first half of 2009. But independent experts argue that the decline in the construction sector actually exceeds 70%. The situation is expected to further deteriorate in the near future, as the government is unable to find additional resources to inject into the sector to foster a turnaround.
In the background of dropping economic indicators, inflation is rising in Armenia. The country`s statistics body estimated inflationary levels at 3.9% in January-June and 21.9% during the past year.
Also, the unemployment rate has increased 6.5%. Independent experts estimate that over 60% of able-bodied citizens have lost their jobs since the world economic recession began, and the number of the jobless is on the rise. Moreover, the allocations of foreign aid to Armenia have more than halved, exacerbating the economic problems further.
In addition to that, Armenia`s foreign trade turnover dwindled 30% to $1 billion in the first half of 2009. Exports halved, and imports exceeded the volume of exported goods by five times, which implies a five-fold increase in the country`s negative foreign trade balance. Experts believe that the situation is disastrous, warning that the Armenian economy has become dangerously dependent upon imported commodities.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!