Armenia enters recovery stage: Prime Minister

Armenia enters recovery stage: Prime Minister
ARKA, 22.04.2010

Armenian prime minister Tigran Sarkisian said today the country’s economy was out of the crisis and back to recovery track.

Speaking at a recurrent Cabinet session he cited the latest figures of the National Statistical Service according to which the economic recovery continued to accelerate in March resulting in a 5.5% GDP growth in the first quarter. The prime minister singled out a 10% industrial output growth, a similar growth in energy production and a 3.2% growth in agriculture.

The construction sector, once a key engine of growth, was the only sector that dropped in the first quarter by 0.6% to 46.7 billion Drams. The year-on-year growth rate reported by the National Statistical Service was up from 3.1% reported in January-February. The government predicted last November that the economy, which contracted by 14.4 percent in 2009, will expand by only 1.2 percent this year. Late last month it revised the full-year forecast upwards to 1.8 percent.

According to the prime minister, the latest numbers testify to diversification of the economy and its reduced dependence of construction sector growth, but on the other hand they also mean that private investors are not in a hurry to invest in this sector. The premier downplayed a popular belief that the government finances construction sector by reminding that 75% of investments last year into construction came from private investors.

The prime minister also singled out a 6% growth in services, a 60% growth in exports and a 23% growth in imports. He also said IT sector grew by 3%, while production of building materials was up by 50% and the mining sector posted a 21% growth.
The chemical industry posted a 2.5% growth, the jewelry sector rose by 40% and production of equipment was up by 15%. Prime minister emphasized also a 5% tourism growth. According to him, the accelerating growth was due to the government’s anti-crisis measure. He also added that `the entire world is emerging from the recession.' ($1 – 393.23 Drams). -0-