Real Estate Prices Rise in Yerevan

Real estate prices have been booming in Yerevan and most elsewhere. I feel that this can't continue forever and there may be a resulting crash, as a lot of the inflation is artificial, anyway.

The 2006 average market value of a square meter of an apartments in Yerevan has increased by 29% to AMD 196,700/$540. The average price per square meter in the central areas of Yerevan stood at AMD377,600/$1,035.

The most growth was reported in Nubarashen, where an increase of 50.5% was seen.

Does anyone know what accounts for Nubarashen's growth?

Source: Yerevan.ru (translated)

Armenia's Population Increases...Barely

Not quite the breakthrough numbers anyone was expecting, but progress is progress!

Armenia reported today a slight increase in overall population number last year saying it grew by 3,600 people to 3,222,700.

Over 95% of the population are ethnic Armenians. In addition, Russians, Yezidis, Kurds, Greeks, and Assyrians are among the minorities who call Armenia home.

The same article mentions that over 1,000,000 of those people live in Yerevan!

Source: ArmenPress

Armenia Predicts 2007 GDP of 9%

Since you are reading this blog daily - and there is a punishment if you're not - you already know how Armenia did economically in 2006. However, Armenia is working on its 2007 numbers - or at least predicting them.

According to the Minutes of the Board meetings of the Central Bank of Armenia (CBA) on the 2007 monetary and credit policy directions, the capital construction growth rates are expected to decrease with the agriculture and service sphere growth rates remaining the same. Certain rise is expected in the production growth rates, along with lower growth rates for domestic demand and higher export increase rates.

The 2007 state budget envisages AMD 2 trn 322 bln worth nominal GDP, with the real GDP growth planned at 9% and the inflation at 4%.

It will be interesting to see how the year pans out.

Source: Arka

Statistics of Armenia's Economy in 2006

GDP - Gross Domestic Product: $6.3 billion
Economic Growth: 13.2%
Construction Growth: 36.3%
Transport/Communications Growth: 14.8%
Agriculture Growth: 0.2%
Industrial Growth: -1.2%
Trade & Public Catering: 11.7%
Other Growth: 17.1%

What this shows is that there is very much a construction boom going on in Armenia and as we would expect, traditional sectors like industrial and agriculture are not doing that well. All in all, Armenia had a great year in 2006. Here's to 2007!

Source: Arka

Armenia's GDP to Grow 13.5% in 2006

It's no surprise to anyone in Armenia that it is experiencing rapid growth. As long as the administration facilitates that growth, we seem to be on a rather good path, at least economically. By the way, GDP is Gross Domestic Product, which indicates the total annual value of all goods and service produced.

GDP growth will amount to no less than 13.5 percent in Armenia in 2006, ARKA News Agency quoted the republic's Economy Minister Karen Tchshmarityan as saying. In January-November, Armenia's GDP rose 13.2 percent, he said. The minister attributed this advance to an increase in the country's industrial production.

Investment in Armenia's real economy, excluding state-backed credit, will exceed $400m in 2006, which is a 20-25 percent increase on the year before. Investment went chiefly to such sectors as transport, telecommunications, and the mining and metallurgy industries, Tchshmarityan stressed.

During the latest 3 years there were 25000 subjects of small and medium enterprises were established in the republic, more than 11000 of which in 2006. As a result, there appeared 16 000 new jobs during the current year.

For comparison, the GDP of the United States grew 3.2% in 2005. That means Armenia's economy is still nascent and not yet mature.

Source: RBC and Banks.am