Noticeable Sagging of Imports Reduces Armenia`s Foreign Trade Deficit  by 28.4% in 2020

ArmInfo. Perceptible  subsidence imports (by 17.7%), with a modest decline in exports  (3.9%), reduced Armenia's foreign trade deficit in January-December  2020 by 28.4% per annum (against 12.6% growth in January-December  2019 with almost equally high 10.8-9.4% growth in imports and  exports). This is evidenced by the data of the Statistical Committee  of the Republic of Armenia, according to which Armenia's foreign  trade turnover decreased by 13.2% per annum in January- December  2020, against 10.4% growth in 2019. 

According to statistics, Armenia's foreign trade turnover in  January-December 2020 amounted to 3.5 trillion. drams ($ 7.1  billion), in particular, export - 1.3 trillion drams ($ 2.5 billion),  imports - up to 2.2 trillion. drams ($ 4.6 billion), which formed a  foreign trade deficit at 987.4 billion drams ($ 2 billion).  In  December 2020 alone, foreign trade turnover increased by 21.3% due to  the growth of both exports by 22.8% and imports by 20.6%. As a  result, Armenia's foreign trade deficit increased by 22.6% in  December 2020, amounting to 119.2 billion drams ($ 229.8 million). A  year earlier, in December 2019, foreign trade turnover increased by  10.1% due to an increase in imports by 18.4% with a decline in  exports by 8.4%, which increased the foreign trade deficit by 40.8% -  to 210.1 billion drams ($ 439.4 million ).

On an annual basis (December 2020 to December 2019), foreign trade  turnover decreased by 19.8% due to a decline in imports by 29.6%,  while exports grew by 8.6%. A year earlier, in December 2019 to  December 2018, foreign trade turnover showed an increase of 39.3%, to  a greater extent provoked by the growth of imports (by 51.7%) than  exports (by 13%).

Against this background, economic activity in Armenia decreased in  January-December 2020 by 7.5% per annum, against 7.8% growth in  January-December 2019. In December 2020 alone, economic activity  increased by 27.7% after the November decline by 10.2%. On an  annualized basis (December 2020 versus December 2019), economic  activity decreased by 8.8% (against an increase of 10.7% in December  2019 versus December 2018).

Note that according to the October forecast of the World Bank for  2020, a decline in Armenia's GDP was expected by 6.3%, exports and  imports - by 12.7% and 15.1%, respectively. And the December forecast  of the Central Bank of the Republic of Armenia predicted a 7.2%  decline in GDP for 2020, and a more significant decline in exports  and imports than the previously predicted 29-32%.