By Albert Khachatryan

The RA Statistical Service has released the preliminary information on January-July 2010. According to the information, 104.0% GDP growth rate was registered during the period under review as compared with the corresponding period last year. This January-May, 108.8% GDP growth rate was registered, with 106.7% growth rate registered this January-June.

A sharp decline in agricultural output due to unfavorable weather accounts for the lower GDP growth rates. An unsatisfactory situation in the livestock sector played its role as well. Due to all the factors the gross agricultural output showed a decrease of as much as 23% this January-July as compared with the corresponding period last year.

On the other hand, other economic sector registered increase. Specifically, industrial output (without electric power) showed an 11.4% increase. Industrial output is much higher than agricultural output, 434.5bn AMD against 189.8bn AMD this January-July.

Much lower growth rates were registered in the construction sector – 100.1% against 112.5% this January-May. This July a 13.8% decline in the construction sector was registered as compared with June. So attempts to restore the sector’s status had a temporary effect.

The trade sector did not register any progress. Retail trade turnover remained unchanged since last January-July. Inflation, which reached 107.4% during the period under review, played its negative role.

The paid services sector showed a 6.1% increase. The following conclusion can be made: since needy families cannot afford mote services at the expense of food and other products, the increase in the paid services sector can be accounted for by the rich class’ greater expenses on services.

Exports increased by 143.3% against a 122.8% increase in imports. However, the export-import ratio remains 1:4, with an unfavorable balance exceeding U.S. $1/5bn.