10.3% ECONOMIC GROWTH RECORDED IN ARMENIA IN H1 2008

ARKA
Aug 6, 2008

YEREVAN, August 6. /ARKA/. A 10.3% economic growth was recorded in
Armenia in the first half of this year against the same period of 2007.

The RA National Statistical Service reports that the volume of Gross
Domestic Product (GDP) was 1,322,732.6mln Drams (in market prices)
in the period under review.

GDP deflator index was 108% in the period as compared with January-June
2007.

According to the statistical data, 7.7% growth of gross added value
provided a 6.9 pct increase in the actual volume of GDP (9.2pct in
January-June 2007). 29.9% growth of taxes, the subsidies exclusive,
provided 3.4pct of the actual growth of GDP (2.4pct in January-June
2007).

In the period, 16.8% construction growth raised the GDP by 3.4pct
(against 3.8pct in the first half of 2007). Industry (including energy
sector) provided 0.1pct of economic growth (0.5pct in January-June
2007).

8.3% growth of agriculture, forestry, hunting and fishing provided
0.9pct of the economic growth in the period.

22.8% growth recorded in financial sector and real estate transactions
provided 1.8% of the GDP growth (2pct in January-June 2007).

The share of added value was 86.5% in the GDP structure against 88.6%
in the first half of 2007.

The share of industrial production was 39.6% against 39.8% in January-
June 2007. The share of agriculture was 9.4% and that of construction
was 22.7% in the period. Trade, public catering, transport and
communication provided 18.6%, the services sector – 12%.

Taxes, the subsidies exclusive, constituted 13.5% of the GDP.

GDP per capita was 410,353Drams or $1,334 (871 Euros) at the end of
June this year.

11.6% economic growth was recorded in the first half of 2007.

Under the state budget, 10% growth of GDP is expected in Armenia
in 2008. ($1=301.03Drams).