Armenia`s foreign trade deficit increased by 33% per annum in May  2021

ArmInfo.A more impressive growth in exports than imports increased the foreign trade deficit of Armenia in January-May 2021 by 13% per annum (against a decline of  18% a year earlier, with a decline in imports by 12.8% and exports by  8.1%).

At the same time, in May of this year alone, this indicator  decreased by 7.4%, against the background of moderate growth in  exports with a negligible increase in imports. And in May 2021  compared to May 2020, the foreign trade deficit increased by 33% as a  result of an almost equal significant growth in exports and imports,  but still with some prevalence of export rates.

According to the preliminary data of the RA Statistical Committee,  Armenia's foreign trade turnover in January-May 2021 grew by 11.6%  from 11.2% decline a year earlier, which is due to the reversal of  the y-o-y dynamics of exports and imports from 8.1-12.8 % decline by  20.8-6.7% growth. As a result, Armenia's foreign trade turnover  amounted to 1.5 trillion drams ($ 2.9 billion), in particular,  exports - 567.4 billion drams ($ 1.1 billion), imports - 931.8  billion drams ($ 1.8 billion), which formed a foreign trade deficit  at the level of 364.4 billion drams ($ 695 million).  In May 2021  alone, foreign trade turnover increased by 3.9% due to an increase in  exports by 7.9% and a negligible increase in imports by 1.5%. As a  result, Armenia's foreign trade deficit amounted to 83.4 billion  drams ($ 160 million) in May 2021, decreasing this time more  restrained (by 7.4%) than in the same month of 2020 (by 21.1%). A  year earlier, in May 2020, foreign trade turnover increased by 13%  due to a 30.7% increase in exports with a modest 4.3% increase in  imports.

On a y-o-y terms  (May 2021 to May 2020), the output of foreign trade  turnover by 35.3% growth was almost equally due to an increase in  exports by 36.7% and imports by 34.5%. A year earlier, in May 2020 by  May 2019, imports were in a more significant decline (by 21.8%) than  exports (by 8.7%), which accelerated the subsidence of foreign trade  turnover to 17.3%.

According to statistics, the economic activity of Armenia in  January-May 2021 increased by 4.3% per annum, against a decline of  3.9% in the same period of 2020. In May 2021 alone, economic activity  slowed down to 2% from 3.2% in April, while a year earlier, the exit  from the April 12.9% decline to the May 13.3% growth was recorded. On  a y-o-y terms May 2021 to May 2020), economic activity increased by  10.9% (against a decline of 12.8% in May 2020 to May 2019).

To note, according to the forecast of the World Bank (WB) updated in  June, GDP growth in Armenia in 2021 will amount to 3.4%. In terms of  Armenia's foreign trade, the World Bank forecasts an increase in  exports and imports by 8.7% and 8.3% for 2021, respectively. In its  May forecast, the IMF expected GDP growth by 1% in Armenia for 2021.   The new forecast of the Central Bank of Armenia (June) foreshadows  GDP growth in 2021 by 4.6%. According to statistics, Armenia's GDP in  2020 decreased by 7.4% - to 6.2 trillion drams (against an increase  of 7.6% - to 6.5 trillion drams in 2019).