6.7% INCREASE IN LABOR PRODUCTIVITY RECORDED IN ARMENIA IN 1ST QUARTER 2006

Arka News Agency, Armenia
June 28 2006

Yerevan, June 27. /ARKA/. A 6.7% increase in labor productivity was
recorded in Armenia in the 1st quarter of 2006.

The increase in labor productivity was lower than that in salaries,
which resulted in inflationary pressures on the consumer market. If
this trend is maintained, inflationary pressures on the labor market
may be expected during the next months of 2006.

With the unemployment level decreasing, the increase in average
monthly wages continued in Armenia. In January-March 2006, a 1.3%
decrease in unemployment down to 7.6% was recorded, while the average
monthly wages increased by 17.3% (AMD 55,600). A 16% rise in real
wages was recorded in March 2006.