BUSINESS ENVIRONMENT INDEX IN ARMENIA DECLINES 23.4% TO 37.6 AT 2ND Q 2009

ARKA
June 24, 2009

YEREVAN, June 24. /ARKA/. Armenia’s business environment index for the
second quarter was 37.6 and consumer confidence index 43.4 on 100-point
system, the press office of the Central Bank of Armenia reports.

According to the press release, the indices went 23.5% and 12.3 points
down, compared with the same quarter of 2008. The business environment
index rose 12%, while consumer confidence index lowered 4.2% at the
second quarter of 2009, compared with the first quarter.

Armenia’s economic activity index reached 56.9 at the second quarter of
2009 after rising 18.3%, compared with the first quarter and declined
28.2%, compared with the same quarter of the previous year.

Index of economic activity is based on an average method of
respondents’ estimations and expectations for industrial output,
industrial orders and changes in industrial reserves.

Consumer confidence index is arithmetical mean of households’
expectations for change in incomes, expenses and occupation rate as
well as their views on the current economic situation.

Business environment index is calculated by averaging organizations’
estimation of changes in economic situation and risks.

The Central Bank of Armenia started surveying non-financial, financial
and households in 2005 to compare a quarter’s economic situation
with the previous quarter and see economi c expectations of the
organizations under review.

The Central Bank surveyed 819 organizations in industry, construction
and services and 1804 households in Yerevan and all Armenian provinces.

The surveys were conducted by phone, Internet, fax and letters.

Higher-than-50 index shows intensive economic activity, lower-than-50
sluggish activity and 50 unchanged situation.

From: Emil Lazarian | Ararat NewsPress