As compared to last year, Armenians, living mainly off their salaries, have seen an increase in their incomes by a little more than the rate of the rising cost of living, according to the data by the National Statistical Service of Armenia (NSS) published this week. (The published statistics presents the main macro-economic indicators characterizing the country’s socio-economic situation in the first six months this year).

Even so, ordinary citizens have hardly felt this positive shift in statistics, considering the skyrocketing prices on certain types of essentials, especially unusually high prices for agricultural products during this time of the year.

Still, according to the NSS data, during the first six months this year, the average monthly nominal wages rose by 7.9 percent as compared to the same period last year; and the consumer price index (CPI) (a measure estimating the average price of consumer goods and services purchased by households) showed a 7.3 percent increase. Roughly speaking, this means that a working Armenian citizen has seen his or her wages buying some more improved by 0.6 percent.

The results of the first half of the year indicate that, as compared to the same period last year, the Gross Domestic Product (GDP) rose by 6.3 percent, but as compared to May 2010 it fell by 2.1 percent. Almost all spheres of the economy, except agriculture, registered growth during the first six months this year. A 13.1-percent decline was registered in agriculture, which become the main reason for the slowdown of month-on-month economic growth in Armenia.

The decline in the agricultural sector reflected the unfavorable weather conditions this year, as a result of which, as compared to June last year, vegetable prices rose by 21 percent and fruit prices – by 17 percent.

Unlike the agricultural sector, growth was registered in construction which traditionally has been a locomotive of growth in Armenia in the past decade or so.
The growth in construction in January-May this year totaled 12.5 percent, and in June, as compared to May, it rose by 47.3 percent. Specialists explain such a growth by the seasonally growing rate of construction which set a faster pace in June.

Parallel to the economic growth, during the first six months this year, the number of officially registered unemployed rose by 0.8 percent, totaling 84,800 people as of June 2010.

By Siranuysh Gevorgyan
ArmeniaNow reporter

www.armenianow.com