Economic activity in Jan-Aug surpasses expectations of Central Bank

YEREVAN, October 19. / ARKA /. Armenia’s economic activity in the first eight months of 2012 advanced 8.3 percent year-on-year, the Central Bank said today in a report on the October 9 meeting of its Board.

"The economic activity growth in the first eight months driven by agricultural and industrial expansion, by 13.2 and 10.8 percent respectively, surpassed the expectations,” the Central Bank said, adding also that the growth in construction and service sectors was within expectations amounting to 1.9% and 5.6% respectively.

Exports in January-August 2012 increased by 11.4 percent when compared to the same period of time of 2011; imports grew by 3.6%. The net inflow of non-commercial individual money transfers in the reporting period increased by 8.6%.

The Central Bank said an evaluation of the second quarter of 2012 suggests that high private consumption growth rate will remain at 7.8%, while private investment rate will gradually slow down to 3.8%.

The report also notes that in September 2012 inflation rate was 0.8%, as a result the 12-month inflation remained unchanged at 2.5% and within the target band (4±1.5 percent) of the Central Bank. In September, the monthly inflation was due mainly to a 10.7 percent rise in the prices of vegetables and potatoes and a 1.6 percent rise in the prices of bakery products. The government GDP projection for this year is 4.2%.-0-