ARMENIAN ECONOMY FALLS TO RECORD LOW IN MONTHS OF RECESSION

/ARKA/
August 6, 2009
Yerevan

In late June, Armenian economy fell to the record low in months of
the recession.

National Statistical Service of Armenia said the country faced 16.3%
decline in Jan-June 2009, compared with the same period a year early.

Stepan Mnatsakanyan, head of the National Statistical Service of
Armenia, speaking at a press conference on Wednesday, said that the
construction sector faced decline at the mentioned period of this year.

Its share in GDP shrank from 22.9% in Jan-June 2008 to 14.3% at the
same period a year later.

Mnatsakanyan also said that agriculture, forestry and fishery’s 1.4%
decline had 0.2% reducing effect on GDP in Jan-June 2009, while at
the same period a year earlier these sectors added 0.8 points to
GDP growth.

"As a whole, Armenia’s agriculture heavily depends on season
factors. Agriculture sector’s share in GDP has grown a great deal
since the initial stage of the transition period. Later, construction
enlarged its presence in GDP and then services."

Mnatsakanyan also pointed out industrial downturn and export and
import reduction.

In his words, the only sector that has grown over the period between
January and June 2009 is services sector.

However, he said, retail trade turnover indicators remained unchanged.

Being guided by objectivity – one of the key principles of official

statistics, Mnatsakanyan refrained from forecasting future GDP and
economic sectors’ shares in it. M.V.