YEREVAN. – Armenia is shifying economic growth from consumption to the production and export, Prime Minister Hovik Abrahamyan said during a Cabinet meeting on Tuesday.

The Prime Minister said last year’s negative trends in main partner countries threatened prospects of outrunning economic growth. Even against continued deflation, an economic growth a 4.4 percent was registered in the first half, with index of economic activity rising by 4.8 percent as compared with the same period last year.  

“Thanks to countercyclical monetary policy and timely response to the difficulties, the impact of economic shocks has not passed into 2016. According to the experts, external shocks in 2015 could reduce incomes by 20 - 30% unless government made certain steps,” Abrahamyan said.

External trade turnover rose by 8.9 percent with input of processing industry growing by 5.1 percent and mining industry by 18.1 percent.

The exports of goods grew by 16.7 percent in six months of 2016, while import started reviving and dropped only by 3.7 percent.

“In the first five months of 2016 export of precious and semi-precious stones, finished food products, textiles, plant products increased sharply. It may be noted that, despite the reduction in domestic demand, the economic growth in Armenia in the past year and a half has been provided at the expense of foreign trade, which proves qualitative change in the growth model,” PM added.