INDUSTRY OF NAGORNO KARABAKH REPUBLIC IN 2008

NKR Government Information and Public Relations Department
June 16, 2009

During the current month the NKR National Statistic Service published
the statistic collection on "Industry of Nagorno Karabakh Republic"
which is compiled on the basis of the recruited statistic accounts
and data of the observations. The collection contains information on
the statistic indices describing the NKR industrial activity of 2008
according to types, separate branches and regional distributions of
the economic activity, separate data are presented in the context of
five years, which enables to observe their dynamics.

In 2008, at factual prices, industrial production of AMD 2534.5
mln was produced in the Republic. The physical volume index of the
industrial production against 2007 formed 111.6%. The volume of
the industrial production substantially underwent the influence of
the processing industry, increase of the volume of which by 22.9%
secured the 8.2 percentage point of increase of the entire industrial
production volume.

Structure of the Industrial Production according to Regions in 2008

Quarterly observation of the dynamics of industrial production volumes
in 2008 reveals its fluctuation dependence upon the dynamics of the
volumes of mining industry production. The dynamics of the volumes
of electrical energy, gas, water industry and distribution shows
that in the first and fourth quarters of 2008 as well as of 2007
the volumes are greater than those of the second and third quarters,
which is stipulated by the seasons.

In the total number of industrial organizations minor and ultra-minor
organizations prevailed, which formed correspondingly 60.0% and 33.7%
of them. It is characteristic that minor and ultra-minor organizations
forming 93.7% produced 24.7% of the whole industrial production volume,
whereas 75.3% of the total volume of industrial production fell to
middle and large-scale organizations which formed 6.3% of the whole.

In 2008, the volume of consumer goods production amounted AMD 6341.2
mln and increased by 18.2% in comparison with the previous year. The
mentioned growth is stipulated by correspondingly 41.6% and 40.6%
increases of volumes of foodstuffs and strong drinks production .

In 2008, 24.4% of the total volume of industrial production fell to
production of foodstuffs, drinks inclusively, which, in comparison
with the last year, increased by 33.2% amounting AMD 6188.7 mln.

In 2008, in the branch of industry production volume per person
formed AMD 5034.9 thousand (in comparable prices) increasing by 13.0%
as compared with the previous year.

In 2008, the average annual registration number of people engaged
in industry formed 5034 persons or 98.8% against the previous year,
meanwhile decrease of 4.7% was recorded in the processing industry. The
average annual registration number of the employees increased by 1.5%
in the mining industry, by 3.1% in the sphere of electrical energy,
gas and water industry and distribution.

The realization level of the produced goods is a most important
indication of the financial results of industrial production, which
formed 100.2% in the accounting year decreasing by 2.7 percentage
points in comparison with the previous year. It means that in case of
ready-made production of AMD 25345.5 mln produced in the industry that
of AMD 25392.0 mln was realized, from which production of AMD 12709.2
mln – in the CIS countries and AMD 84.5 mln – in other countries. The
volume of the production realized in the CIS countries and in other
countries formed correspondingly 95.4% and 16.9% against the last year.

Realization level decrease in 2008 as compared with the previous
year is mainly conditioned by the decrease of the realization level
of mining industry production. According to regions the lowest
realization level, like the last year, was recorded in the region of
Hadrout – 80.2%.

Illustrations of the collection are available in the library and
official website of the NKR National Statistic Service.