Armenia’s Economic Activity Surges 12.2%, Foreign Trade Skyrockets by 99.4% in First Four Months of 2023

YEREVAN — The National Statistical Committee (NSC) announced that Armenia’s economic activity increased by 12.2% in January-April 2023 compared to the same period in 2022. In April 2023 alone, economic activity rose by 3.4% compared to the previous month and by 12.1% compared to April 2022.

During this period, all sectors of the economy experienced growth, except for electricity production and the non-food prices index. Industrial output reached over 747.8 billion drams, showing a 2.4% increase compared to January-April 2022. However, a decline of 0.8% was registered in April 2023 compared to April 2022.

The construction sector saw a significant rise of 16.8%, amounting to over 94.8 billion drams. In April 2023, there was a growth of 19.3% compared to April 2022.

Foreign trade in January-April 2023 nearly doubled year-on-year, reaching a little over $5.8 billion. Armenian exports increased by 2.1-fold compared to the same period in 2022, amounting to over $2.1 billion. In April 2023, exports witnessed an 81.3% increase compared to April of the previous year, equivalent to 844.5 billion Armenian drams. Imports during the reporting period totaled over $3.6 billion, experiencing a 93.9% increase compared to January-April 2022. In April of the current year, imports rose by 84.7% year-over-year, amounting to over 1.4 trillion Armenian drams.

In January-April 2023, domestic trade turnover surged by 23.2% year-on-year, surpassing 1.4 trillion drams. In April 2023 alone, domestic trade increased by 28.9% compared to April 2022.

The services sector, excluding trade, grew by 22.2% compared to the previous year, amounting to 919.3 billion drams. In April 2023, the sector experienced a growth rate of 20.4% compared to April 2022.

The Armenian government has projected a growth rate of 7% for 2023, while inflation is expected to be around 4% (±1.5%). The Central Bank previously anticipated a growth rate of 5.8% for this year, with a gradual slowdown of 12-month inflation to stabilize around the target of 4% in the second half of 2023. (Exchange rate: $1 = 386.40 AMD).