Media: Armenian manufacturing industry in deplorable state

Armenia's manufacturing industry is in a deplorable state. Industrial growth in the first half of the year amounted to only 1 per cent. This is one of the worst indicators in the countries of the Eurasian Economic Space.

According to this indicator, Armenia is ahead only of Kyrgyzstan, and inferior to all others, Caliber.Az reports per Armenian media.

According to Armenian media, the registered growth rate of 1 per cent is far below even the normal growth rate that Armenia had before the Russian-Ukrainian war.

The media writes that not so long ago Armenians were proud of the growth of the manufacturing industry, but even taking into account its growth rate, Armenia's situation is one of the worst in the EAEU.

In Armenia, it amounted to only 4.3 per cent, while the average for EAEU countries was 6.1 per cent, which is 1.8 per cent higher than Yerevan’s figure.

There are many reasons, but instead of eliminating them, the government creates new obstacles.

"Perhaps the biggest obstacle has been the appreciation of the national currency against both the dollar and the Russian ruble, as a result of which the Armenian economy has lost its competitiveness in the Russian market.

The real sector of Armenia's economy, and not only the real sector, is in a difficult situation. This will become increasingly visible. It is for this reason that international organisations have moderate expectations for Armenia's economic growth at the end of the year, even in the case of double-digit economic growth at the beginning of 2023.

Experts from various financial institutions and the Eurasian Development Bank believe that Armenia's economic growth will be much more modest in the second half of the year, with overall annual economic growth falling to 7.5 per cent.

Estimates of Armenia's economic growth by other institutions, including the World Bank and the Monetary Fund, are lower, mostly in the 4.5-5.5 per cent range, after double-digit growth in the first half of this year," Armenian media wrote.