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LOW INCOME KEEPS INFLATION LOW
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy26951.html
Published: 12:10:08 - 25/07/2012
The economic activity index of Armenia was 7.8% in the first half of
this year compared with the same period of the past year. The National
Statistics Service informs that growth was reported in almost all the
spheres. Manufactured goods grew by 13%, GAP grew by 8.1%, services
grew by 12%, electric power production grew by 9.1%.
According to the NSS, the average nominal salary grew by 6.2%. Trade
increased by 8.2%, including export by 13.5 and import by 6.7.
Building continues to decline.
Commenting on these indices, Member of Parliament Artsvik Minasyan,
ARF, told Lragir.am that the economic activity index does not indicate
growth and progress. He says the economic potential of Armenia is
not used at full. "On the one hand, we have huge issues relating to
unemployment, salaries, income. On the other hand, our country is
not competitive in the world and in the region. It means that this
pace cannot be satisfactory," he said.
According to Minasyan, as building continues to decline, it leads
to growth of unemployment, housing issue, decline of industrial
infrastructures. For their part, these factors affect the dynamics
of economic development and the quality of life.
"Where economic activity is explained by the growth of the GAP,
we should keep in mind that this is a season when production of
agricultural products, as well as the high prices, helps establish
this index. If we calculate the real index, we will not see a
significant growth. The same refers to manufactured goods. We have
13%, a double-digit growth, but statistics of industries shows that
Armenia continues to boost production of metals which is not the
result of the economic structure and correct economic policy," he said.
He says production of non-metal mines is at an absolutely low level
and is an important sphere not only in terms of environment but also
the economy.
The Consumer Price Index totaled 102.2% in the first half of this
year compared with the first half of last year. Inflation is only 2.2.
Artsvik Minasyan says this is related to income of households.
"When citizens do not have enough income to buy one product or another,
its price cannot soar, of course. In other words, inflation is low
because people are half-hungry. This is not a good result," he notes.
The standard of living falls, people are desolated, they increasingly
think about migrating to earn a decent living in other countries.
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy26951.html
Published: 12:10:08 - 25/07/2012
The economic activity index of Armenia was 7.8% in the first half of
this year compared with the same period of the past year. The National
Statistics Service informs that growth was reported in almost all the
spheres. Manufactured goods grew by 13%, GAP grew by 8.1%, services
grew by 12%, electric power production grew by 9.1%.
According to the NSS, the average nominal salary grew by 6.2%. Trade
increased by 8.2%, including export by 13.5 and import by 6.7.
Building continues to decline.
Commenting on these indices, Member of Parliament Artsvik Minasyan,
ARF, told Lragir.am that the economic activity index does not indicate
growth and progress. He says the economic potential of Armenia is
not used at full. "On the one hand, we have huge issues relating to
unemployment, salaries, income. On the other hand, our country is
not competitive in the world and in the region. It means that this
pace cannot be satisfactory," he said.
According to Minasyan, as building continues to decline, it leads
to growth of unemployment, housing issue, decline of industrial
infrastructures. For their part, these factors affect the dynamics
of economic development and the quality of life.
"Where economic activity is explained by the growth of the GAP,
we should keep in mind that this is a season when production of
agricultural products, as well as the high prices, helps establish
this index. If we calculate the real index, we will not see a
significant growth. The same refers to manufactured goods. We have
13%, a double-digit growth, but statistics of industries shows that
Armenia continues to boost production of metals which is not the
result of the economic structure and correct economic policy," he said.
He says production of non-metal mines is at an absolutely low level
and is an important sphere not only in terms of environment but also
the economy.
The Consumer Price Index totaled 102.2% in the first half of this
year compared with the first half of last year. Inflation is only 2.2.
Artsvik Minasyan says this is related to income of households.
"When citizens do not have enough income to buy one product or another,
its price cannot soar, of course. In other words, inflation is low
because people are half-hungry. This is not a good result," he notes.
The standard of living falls, people are desolated, they increasingly
think about migrating to earn a decent living in other countries.