Tuesday, October 5 2021 18:44
Karine Melikyan

Growth of Armenia`s foreign trade turnover in 8 months of this year  significantly exceeded pre-COVID rates

Growth of Armenia`s foreign trade turnover in 8 months of this year  significantly exceeded pre-COVID rates

ArmInfo. Armenia's foreign trade turnover in January-August 2021 amounted to $ 5 billion, with an improvement in y-o-y dynamics to 12.7% growth (from a 10.2% decline a year earlier), and with a noticeable excess of the 2% pre-COVID  growth rate. Moreover, exports (21.8%) showed higher growth than  imports (7.7%), with the trend emerging from the downward 6% and  12.4%, respectively, a year earlier, and with a significant excess of  the pre-COVID upward rates of 4.6 % and 0.7%, respectively.

According to the final data of the Statistical Committee of the Republic of  Armenia, the volume of exports reached $ 1.9 billion, while imports  reached $ 3.1 billion.

In August 2021, the trend of foreign trade turnover changed from an  2.6% upward to a 4.7% downward, due to a deterioration in the  dynamics of imports from 10.7% growth to 8.2% decline, with exchange  of  the export trend from 9.1% decline to 1.4% growth. And in August  2021, compared to August 2020, the decline in foreign trade turnover  by 0.1% was provoked by a decline in imports by 7.3% with an increase  in exports by 13.9%, which nevertheless looked much better than the  dynamics of a year ago, when the 4% decline in foreign trade turnover  was due to the almost similar downward rates of exports and imports -  by 3.8% and 4.1%, respectively.

The negative foreign trade balance decreased by 9.3% per annum in  January-August 2021  (against a 19.2% decline in the same period in  2020), amounting to $ 1.2 billion. Moreover, the negative balance of  Armenia's foreign trade with the EAEU countries amounted to $ 506.9  million, having decreased on an y-o- y terms by 16.3% (against 31%  growth a year earlier), against the background of an increase in  exports by 30.8% with an increase in imports by 2.9%. And the  negative balance of Armenia's foreign trade with the EU countries  amounted to $ 133.8 million, decreasing by 43.7% on a y-o-y terms  (against 8.6% decline a year earlier), as a result of improving the  dynamics of exports and imports towards growth by 49.9% and 7.9%,  respectively.   The main buyers of Armenian goods in exports in January-August 2021  are Russia - 27.3%, China - 14.4%, Switzerland - 11.5%, Bulgaria -  8.7% and the Netherlands - 5.4%. The main suppliers of imported  products to Armenia in total imports are Russia - 32.9%, China -  14.9%, Iran - 8.3%, Italy - 4.7% and Germany - 4.1%.  All export  items in January-August showed growth, except for machines /  apparatus, products made of stone, gypsum, cement, products made of  precious metals, oils of vegetable and animal origin, the dynamics of  which is still in decline (3.7-44.9%).  The leading item of Armenian  export - mineral products - increased by 33.8% to $ 705.2 million,  while the second in terms of export volume - prepared foodstuffs -  increased by 8.1% to $ 360.9 million. In third place in terms of  exports - base metals and products from them with an increase of 45%  to $ 217.5 million, in the 4th place - precious metals and products  from them with a decline of 13.5% to $ 196.7 million, and in the 5th  place - products of plant origin with an increase of 48, 1% to $  121.1 million In imports, the leading item showed a more modest  upward trend in January-August: mineral products grew by 14.6% to $  554.2 million, 8% to $ 508.9 million. Despite a 0.2% decline,  chemical products held the third place with a volume of $ 270.4  million. The fourth place in terms of volumes is held by prepared  foodstuffs with an increase of 3.8% to $ 254.9 million, the 5th place  is still occupied by base metals and products from them with an  increase of 0.1% to $ 224.8 million, and the 6th place is held by  textile products with an increase of 22.9% to $ 175.8 million. Export  of chem1ical products increased by 14.3% per annum - up to $ 21.5  million.

To note, according to the forecast of the Central Bank of Armenia for  2021, updated in September, the growth of exports and imports will  amount to 7.4% and 8.4%, respectively, with an acceleration in 2022  to 8.1% and 9.3%, in 2023 - up to 12% and 10.9%, respectively. The  Central Bank, expecting a slight increase in the current account  deficit, nevertheless kept the range forecast for 2021 - 1-3% of GDP.  In the medium term, according to the Central Bank's estimates, taking  into account the trends of recovery in the global and domestic  economies and the relatively stable behavior of international prices,  the current account deficit will gradually approach the balanced  level of 4-6% of GDP.


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