Armenia’s Economic Activity Index Grew 10.2% in Five Months, Foreign Trade Increased by 36.6% to Over $3.9 Billion

YEREVAN — Armenia’s economic activity index increased by 10.2% in the first five months of 2022 compared to the same period of 2021, the National Statistical Committee reported.

It said the economic activity in May 2022 was up 13% when compared to May 2021 and up 6.1% compared to April 2022.

According to the official data, growth was recorded in all economic sectors. The industrial output in January-May 2022 amounted to over 961 billion drams, having increased by 2.7% from January-May 2021. The output in May this year compared to May last year, increased by 2%, and by 3.2% compared to April 2022.

The construction sector grew by 11.4% to over 112 billion drams. In May 2022 compared to May 2021 the sector grew by 18.1%, and by 21% when compared to April 2022.

The services sector (without trade) in January-May 2022 amounted to over 906.6 billion drams, which is 24.9% higher than in January-May 2021. In May 2022 it was up 30.2% compared to May 2021, and 6.3% compared to April 2022.

According to the statistical data, the domestic trade in January-May 2022 amounted to over 1.4 trillion drams, having increased by 8.9% compared to the same period of 2021. In May 2022 the figure rose by 12.4% compared to May 2021, and by 9.8% compared to April 2022.

Armenian government’s growth projection for 2022 is 7%, and the inflation is set at 4% (± 1.5%).

Armenia’s Central Bank revised earlier upwards the country’s GDP growth forecast for the current year from 1.6% to 4.9%

According to the World Bank’s latest Global Economic Prospects report, Armenia’s GDP in 2022 is expected to grow by 3.5%, down 1.3 p.p. from the previous forecast, made in January.

World Bank analysts expect Armenia’s GDP to grow by 4.6% in 2023 (0.8 p.p. down from the January forecast) and by 4.9% in 2024. ($1 – 409.64 drams).

In the same period, Armenia’s foreign trade in amounted to $3.913.4 billion, which is 36.6% higher than the foreign trade in the same period of 2021.

In May 2022, the foreign trade increased by 45.5% compared to May 2021 and by 23.9% compared to April this year. In January-May 2022, the foreign trade in Armenian drams was worth 1,861.6 trillion.

Armenian exports in January-May 2022 increased by 27.5% to $1,385.5 bln compared to January-May 2021. In May 2022 they grew by 33.7% compared to May 2021 and by 19.9% compared to April this year. In Armenian drams, exports in January-May 2022 totaled 658.5 billion.

Imports during the reporting period amounted to $2,527.9 billion, registering a 42.2% increase compared to January-May 2021. In May 2022, imports rose 52.8% compared to May 2021 and 26.3% compared to April 2022. In dram equivalent, imports in the first 5 months of this year totaled 1,203.1 trillion. ($1 – 409.64 drams).