17.5% ECONOMIC DECLINE RECORDED IN ARMENIA IN JAN-OCT 2009

ARKA
Dec 1, 2009

YEREVAN, December 1. /ARKA/. Armenia faced 17.5% economic decline in
Jan-Oct 2009, compared with the same period a year before, National
Statistical Service reports.

GDP amounted to AMD 2466.3 billion and the Jan-Oct deflator index
compared with the same period of the previous year was recorded
at 82.5%.

According to the statistical report, 16.8% gross VAT reduction (against
7.7% growth in Jan-Oct 2008) curbed GDP growth by 14.9 percentage
points, and 23% decrease in tax receipts (against 23.1% in Jan-Oct
2008) slowed down GDP growth by 2.3 points, while in Jan-Oct 2008,
tax inflow added 2.2 points to it.

The statistical report says 48.8% decline in the construction sector
lowered GDP growth indicator of Jan-Oct 2009 by 13.5 points, while
at the same period a year earlier construction added 3.2 points to it.

Official figures show that 10.7% decline in industry, including energy
sector, hobbled GDP growth by 1.5 points against 0.7-percent favorable
impact a year earlier.

Agriculture, forestry and fishery with their 0.8% decline had
0.1-percent adverse impact on real GDP growth against 0.4-percent
contribution to it a year before.

The financial sector’s 0.3% rally in realty deals had no impact on GDP,
while in Jan-Oct 2008 it propelled its growth by 1.1 points.

VAT had 89.3% in GDP in Jan-Oct 2009 against 88.8% a year before.

Industry, including energy, constituted 13.7% against 13.4%,
agriculture, forestry and fishery 16.4% and construction 18.1% of
the Jan-Oct 20009 GDP.

The share of trade, cars, transport and communications in GDP is 20.3%
and services as a whole constitute 43.3%.

Taxes, excluding subsidies, had 10.7 percent in GDP in Jan-Oct 2009.

Per-capita GDP amounted AMD 760,499 or $2,117 (~@1,535) at the
mentioned period.

In Jan-Oct 2008 Armenia recorded 9.2% economic growth. ($1 = AMD
385.76).