11,1% ECONOMIC GROWTH – EXPORT INCREASES, BUT YIELDS TO INCREASING IMPORT
By Ara Martirosian

AZG Armenian Daily
23/05/2007

In the first four months of this year, according to National
Statistical Service, the economic growth of Armenia was 11,1
percent. In the first quarter of this year the growth index was nearly
the same: 11 percent.

The rate of growth in industry has decreased to 1,7 percent, instead
of 4,3 percent of the first quarter of this year. It is conditioned
by the diminution in electricity production (2,3 %), in consequence
of this the volume in the industry of electricity production has
decreased to 0,2, while the industrial production volume (except the
brilliant industry) has increased to 7,8 percent.

The last index shows that the industrial diversification continues in
any way; the dependence on one branch decreases, and other branches
develop, i.e. chemistry, food and mining industry.

Unfortunately, this index also means that the fall in brilliant
industry continues.

The volume of production has had a miserable growth by 0,7 percent
in agricultural branch, despite of this the retail trade circulation
increased to 11,9 percent. It is recorded 16 percent growth in the
sphere of service. The little growth of 6,4 percent in construction
is surprising; while it was 16,4 percent in the first quarter of
this year.

The medium monthly salary in the first four months of 2007 increased
to 18,3 percent and excelled to 70.000 drams. In the public sector
that index is 51,5 thousand drams, in private sector – 88.000 drams.

Prices rose by 2,1 percent compared with December of last year.

Foreign trade circulation volumes have increased to 42,2 percent,
exceeding 1 billion dollars and getting to 1,2 billion dollars. The
export has increased to 323 million dollars, by 27,1 percent more
than in the first four months of last year. The import has increased
to 870 million dollars, by 48,8 percent more than the index of last
year. The negative balance in foreign trade has deepened to 547
million dollars. In the first quarter the difference between import
and export was 414 million dollars in favor of import. It means that
import increases in fast trends compared with export.

The upward trends (44,4 percent) in export (without brilliant
production) are a little comforting. Import (without brilliant
production) has increased by 59 percent.