Armenia's economic growth halved in May, reaching 5.2% compared to 10% in April, according to the World Bank's monthly report on Armenia's economic development.
The decline was primarily due to a reduction in industrial output and trade volumes. Industrial growth dropped to 6.9% from 16.6% in April, mainly due to a decrease in manufacturing output, which fell to 11.5% from 27%. The main reasons were a reduction in the production of alcoholic beverages and a slowdown in tobacco production.
Trade volume growth also slowed to 17.6% from 27.2% in April, despite an acceleration in the growth rates of the services sector (2.8%) and construction (18.1%).
Despite the slowdown, overall economic growth for the January-May period was 11.2%, exceeding all expectations.
In an exclusive interview with BMG, Armenian Finance Minister Vahe Hovhannisyan stated, based on his current assessment, that the Ministry of Finance anticipates an economic growth rate of around 7% in the near future.
Meanwhile, the Eurasian Development Bank (EDB) forecasts Armenia's economic growth at 7.5% and an acceleration of inflation to 1.5% in 2024.
Armenia's state budget for 2024 projects an economic growth rate of 7%, with inflation targeted at 4% (±1.5%).
