RA Economy Key Figures in 2012
(In 2012, 7.2% economic growth was recorded in Armenia)
In 2012, 7.2% economic growth was recorded compared to 2011 in AMD. In particular GDP growth according to sectors was as follows; industry sector – 8.8%, services – 10.8%, manufacturing electricity – 8.1%, agriculture – 9.5 %.
Doing Business: Armenia’s rate was increased by 18 points compared to the previous year in Doing Business 2013. Armenia’s current 32nd place is the best in CIS area and in the history of the country. The Government, in general, adopted a policy to improve economic climate reflecting the weakening of the administration terms (small business exemption from value added tax, tax reports reducing, registration facilitation, liberalization of notary functions, etc.)
Macroeconomic stability: Armenia succeeded in achieving macroeconomic stability by 7,2 % economic growth. The latter records one of the highest economic growth rates in the region, inflation being one of the lowest (within 4%). In 2012 state budget deficit was managed to reduce lower than 3% of GDP.
Investment Projects: Many investment projects got value added tax deferral opportunity, as well as temporary import regime is extended for 5 projects. These projects leaded more than 100 billion AMD investment in Armenia’s economy specifically in the industry sector thanks to this fact growth has been recorded. It is the second year that the industry maintains the progressive growth.
Below indicated some other achievements as well:
Establishment of free economic zone: First free economic zone admits applications in “Rao Mars” plant and the area of Mathematical Institute of Yerevan since November. Although the free economic zone does not have a considerable impact on the economic life of Armenia, however, this is a long-term project. Establishment of free zones for jewelry and export of agricultural products (in the “Zvartnots” airport) in the forthcoming period is expected.
Launch of large investment projects. In 2012, two large investment projects have been launched – the construction of North-South Road Corridor and Hydroelectric Power Station of Meghri. In both cases, the main activities will be implemented in the coming years which could significantly affect on the overall economic situation.
About 5-7% added value growth has been recorded in 2012.
Industry growth is mainly achieved through the sub sectors having export potential, such as mining, food and beverage production, diamond and energy, the production capacity increased thanks to the enterprises operating in this field.
Added value forecast was hardly changed in the area of construction. Moreover, the industry output have been reduced partially after 2008 in the last three years forming a relatively small base of construction and, in 2012, value added real growth of the field was 3,5 – 5,5 % mostly due to the volume growth of construction implemented in the field of energy, agriculture, transport and communication. Significant changes of construction volumes implemented by the means of population were not observed. The growth was 0,2%.
The year was successful for the field of agriculture. The growth was 9,5 % compared to 2011. Weather was favorable which contributed to the abundant harvest. Unprecedented high-yield of crop was gathered from grape, apricot and other green culture, although some negative trends were recorded in the field of animal husbandry (shortage of meal and expensive prices, mass cattle hide). Overall, agricultural market was cheap in this year and did not cause social tension. Value added 4-6% real growth has been recorded in the agricultural field. The development of the field will keep on staying as priority sector in the next five years.
The export of alcoholic beverages is in the second place in the export structure of Armenia, first place being the export of copper concentrate. There is about 30% export growth compared to last year (7.6 million liters was exported in 2010 by the total custom value of 96.8 million USD dollars). Real growth was recorded in the field of drug production and export as well, respectively by 1.4 and 3.6%.
Average salary increased by 4.8%.