Economic activity in Armenia increased by 15.3% in March 2024, according to data from the Statistical Committee. Overall, for the first quarter of 2024, this indicator stood at 14.3%.
Industry emerged as the main driver of economic growth in March, rising by 33.5%. Trade turnover also showed significant growth, reaching 30.4%, while construction and services increased by 13.1% and 4.7% respectively.
Foreign trade turnover during this period increased by 2.1 times, reaching $3.5 billion. Exports tripled, reaching $1.8 billion, while imports increased by 56.2%, totaling $1.7 billion.
During the first quarter, the industrial sector demonstrated impressive growth of 30.4%, mainly due to the growth of the precious and semi-precious metals and stones sector. Trade turnover, construction, services, and agriculture also showed positive dynamics, increasing by 26.5%, 11.7%, 5%, and 3.7% respectively.
Experts note that the sharp increase in economic activity is largely driven by the strong performance of the industrial sector, which in turn is explained by the re-export of Russian gold and precious stones from Armenia to the United Arab Emirates and Hong Kong.
This raises concerns about the sustainability and long-term nature of economic growth, as it is largely dependent on external factors and its stability may be threatened by changes in external conditions.
However, the sharp rise in economic activity was recorded in conditions of deflation. In March, prices in the consumer market decreased by 1.2%. This decrease corresponds to deflation on a quarterly basis.
