ARMENIAN ECONOMY CONTINUES DOUBLE-DIGIT GROWTH
By Ruben Meloyan

Radio Liberty, Czech Republic
Dec 26 2006

The Armenian economy has expanded at a double-digit rate for a sixth
consecutive year, Trade and Economic Development Minister Karen
Chshmaritian said on Tuesday.

According to government data released by Chshmaritian, Armenia’s Gross
Domestic Product grew by 13.2 percent during the first eleven months
of this year. The growth rate for the whole of 2006 is projected to
hit at least 13.5 percent, he said.

President Robert Kocharian hailed the country’s strong macroeconomic
performance as he met with some 60 leading Armenian businessmen late
Monday. "It was one of the most productive years for our economy,"
he said.

Kocharian admitted that the growth is largely driven by a continuing
boom in the construction and services sectors. His government reported
a nearly 40 percent surge in the volume of construction work carried
out across Armenia during the first half of 2006.

By contrast, the local manufacturing sector has been largely stagnant,
with government figures showing Armenian industrial output shrinking
by 1.2 percent from January through November. Chshmaritian blamed
that on a continuing downturn in the global trade in refined diamonds,
one of Armenia’s main export items. He said Armenian exports excluding
diamonds have increased by 6 percent.

"This shows that Armenia’s economy is becoming more diversified,"
Chshmaritian told reporters. "A slump in one or two sectors does not
cause a drastic fall in the overall indicators." He also stressed
the fact that small and medium-sized firms now generate more than 40
percent of GDP.

Armenia’s macroeconomic performance has repeatedly drawn praise
from the International Monetary Fund and the World Bank. The IMF’s
managing director, Rodrigo de Rato, described it as "impressive"
during a June visit to Yerevan.

The Armenian government insists that despite growing income disparity
the growth has benefited all segments of the country’s population.

According to the National Statistical Service (NSS), 34.6 percent of
Armenians lived below the official poverty line as of the beginning of
2005 — down from 56 percent registered in 1999 and 43 percent in 2003.

Kocharian also spoke of a "visible" improvement of living standards,
pointing to a 40 percent jump in sales of household goods and a 20
percent rise in the number of cars imported to Armenia in 2006. "This
means that a middle class is really emerging and that a corresponding
number of households are now somewhat better off," he said.

Kocharian admitted at the same time that his government has yet to
tackle "social polarization" and a widening development gap between
Yerevan and other parts of Armenia.

From: Emil Lazarian | Ararat NewsPress