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Seda Hergnyan

Armenia: Economy Slumps 13.7% in 2nd Quarter

The 3.9% economic growth registered in Armenia in the first quarter of this year was followed by a sharp decline in the second quarter.

In the second quarter (April-June 2020), compared to the same period last year, the economic decline was 13.7%.

The importance of economic statistics is growing these days. Those who are interested in the economy are slowly following the developments that are taking place, how the epidemic affects this or that branch of the economy. Armenia’s Statistical Committee (SC) has summarized the picture of economic growth in the second quarter, changes in GDP.

These figures show that the trade and services sector, which provides more than half of Armenia's gross domestic product in recent years, had the largest impact on the 13.7% economic decline in the second quarter.

The novel coronavirus that invaded Armenia in the beginning of March and the establishment of the state of emergency dealt the first blows to services and trade, but other sectors of the economy were also impacted.

Only six of the twenty spheres singled out by the Statistical Committee closed the second quarter with growth. These are: mining, agriculture, communications, finance, education and public administration (defense, compulsory social security).

Moreover, from mining sector indicators, it would be difficult to assume that there is an economic crisis in the country or that a state of emergency has been declared. The volume of open pit mining in the second quarter of this year, compared to the same quarter last year, increased by 22.4%.

The growth of the communication sector was 15.2%, given the demand for communication services has increased during the state of emergency.

In the field of public administration, defense, compulsory social insurance,growth amounted to 23.9%.

At the same time, there was a sharp decline in a number of areas, such as accommodations, catering (hotels, restaurants and cafes), real estate activities, manufacturing and trade.

In the second quarter of this year, Armenia's GDP at current prices amounted to about 1.271 trillion drams.  

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