YEREVAN, October 1. /ARKA/. Armenia’s GDP growth slowed down to 3.5% in the first half of this year, reads CIS Macromonitor released by analytical department of the Eurasian Development Bank (EDB).
Weak external demand led to almost a zero growth in processing industry (0.2%), which has affected the maintained growth in mining industry (10.2%). The economic situation got even worse due to reduction in energy sector (-12%). Low investment activities contributed to deepening recession in construction field (921.4%), says the document.
In the second quarter foreign trade indicators kept on worsening, reflected in dropping gross international reserves and dram devaluation.
Yet, slowed-down economic activity has not affected stability of state finance. Budget receipts grew by 20.4% as of the end of H1 in yearly terms, whereas expenditures grew by 8% only. Hence, the surplus was 1.6%, according to the report.
Aggregate GDP of CIS countries rose by 1.4% in the second quarter of 2013, considerably lower than the respective level of the year before (4%) and the level of the last quarter (1.7%), says the report.
EDB analysts say recession in industrial production reached its bottom – the reduction was as much as in the quarter before (-0.2%). For the first time the slow-down had impact on retail trade and services, which points to a weaker consumer activity. Investment activity has also slowed down and affected the construction and finance sectors.
Under Armenia’s government budget, 6.2% GDP growth was planned for 2013. –0--