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In August, growth in Armenia’s economic activity slowed to 5.6 percent (yoy), down from 6.2 percent (yoy) in July, the World Bank said in its monthly economic update.

Construction and trade continued to grow in double digits (16.5 percent, yoy, and 14.9 percent, yoy, respectively). Growth in services (other than trade) was also high in August, at 9.5 percent (yoy), nearly doubling July’s 4.9 percent (yoy); this was driven by financial, insurance, hotel, and professional services.

Industry continued to grow at the modest rate of 2.1 percent; a 5.5 percent (yoy) contraction in mining was offset by a 3.8 percent (yoy) growth in manufacturing due to greater food and cigarette production in August. Cumulatively, the Economic Activity Index grew 9 percent (yoy) from January to August.

Net non-commercial money transfers contracted 18.6 percent (yoy) in August. This was driven by a greater fall in inflows (15.5 percent, yoy) than outflows (9.8 percent, yoy). Net money transfers from Russia dropped sharply by 31 percent (yoy) in August, contributing to the total fall. Inflation in September was 0.6 percent (yoy), dropping from 1.3 percent (yoy) in August.

One percent deflation in food prices was the main reason for the fall. Meanwhile, inflation in transport services reached 9 percent (yoy) in September. Average inflation for January-September 2024 was flat (zero percent).