Armenia`s foreign trade with EAEU countries intensifies at a rapid  pace

ArmInfo.Armenia's foreign trade turnover with the EAEU countries in January-August 2021, compared to the same period of 2020, accelerated growth to 11% (from 0.1% a year earlier), exceeding even the pre-COVID growth by 6.7%, and amounting  to $ 1.6 billion. This is evidenced by the final data of the RA  Statistical Committee.

According to statistics, the negative balance of foreign trade of  Armenia with the EAEU countries in January-August 2021 amounted to $  506.9 million, decreasing in y-o-y terms by 16.3% (against 31% growth  a year earlier). This is due to the exit of exports from a 14.6%  decline by 30.8% growth, with a slowdown in import growth from 7.6%  to 2.9%, against a pre-COVID growth of exports by 6% and imports by  7.1%. As a result, the volume of exports in January-August of this  year. amounted to $ 543.7 million, and imports $ 1.1 billion,  respectively.

The upward trend of Armenia's foreign trade turnover with the EAEU  countries was caused by Russia, Kazakhstan and Kyrgyzstan, and in the  direction of Belarus, foreign trade sags. In particular, Armenia's  foreign trade turnover with Russia reversed its y-o-y dynamics from  0.9% decline to 11.8% growth, with Kazakhstan it accelerated growth  from 34.8% to 48.6%, with Kyrgyzstan it changed from the 39. 9%  decline to 14.6% growth, and with Belarus, on the contrary, reversed  the dynamics from 29.8% growth to 15.1% decline. In the pre-COVID  period (January-August 2019), a decline was recorded in foreign trade  turnover with Kazakhstan (by 45.1%), while in the direction of  Russia, Belarus and Kyrgyzstan, the dynamics was upward - by 6.5%,  25% and in 3.2-fold.

Russia holds the lead both in the total volume of foreign trade  turnover ($ 1.5 billion) and in exports and imports ($ 522.1 million  and $ 1.02 billion, respectively). Exports with Russia changed the  y-o-y dynamics from 15.5% decline to 30.9% growth, while import  growth slowed from 6.7% to 4%, against the pre- COVID growth of both  indicators by 6.4-6.5%.

In the structure of Armenia's foreign trade with the EAEU countries,  Belarus, Kazakhstan and Kyrgyzstan follow in terms of volume after  Russia - $ 45.1 million, $ 9.9 million and $ 1.4 million,  respectively.  The export of Armenian goods to Belarus increased by  10.7% to $ 13.5 million, and imports in this direction dropped by  22.9% to $ 31.6 million, while a year earlier both exports and  imports in this direction grew by 30.8% and 29.5% respectively  (versus pre-COVID growth by 13.9% and 28.4%).

In the direction of Kazakhstan, exports increased by 86.4% to $ 6.7  million, with imports growing by 3.9% to $ 3.2 million, while a year  earlier a significant increase was recorded in imports (by 71.4%)  with a moderate increase in exports by 14.1% (versus pre-COVID  descending 21.2% and 53.2%). The export of Armenian goods to  Kyrgyzstan increased by 21.7% to $ 1.4 million with a decline in  imports by 59.9% to $ 44.1 thousand, while a year earlier a  significant increase was observed in imports (by 55.7%) with a  decline in exports (by 42. 4%), against a pre-COVID increase in  exports 4.2-fold and a decline in imports by 67.5%.

The share of Armenia's foreign trade turnover with the EAEU countries  in the total structure of foreign trade amounted to 31.9% in  January-August 2021, which is lower than the level of a year ago  (32.4%), but higher than the pre-COVID 28%. Moreover, the share of  Russia decreased - from 31% to 30.7%, Belarus - from 1.2% to 0.9%,  and Kazakhstan and Kyrgyzstan - did not change - 0.2% and 0.03%,  respectively.  Namely, in the structure of Armenia's foreign trade  with the EAEU countries, the share of Russia is 96.5%, Belarus -  2.8%, Kazakhstan - 0.6%, Kyrgyzstan - 0.1%.

In total, Armenia's foreign trade turnover in January-August 2021  amounted to $ 5 billion, with a y-o-y growth of 12.7% (against a  10.2% decline a year earlier). In particular, the growth in export  volumes by 21.8% to $ 1.9 billion was accompanied by an increase in  imports by 7.7% to $ 3.1 billion, while a year earlier both items  were in decline - exports by 6% and imports by 12.4%. As a result,  Armenia's negative foreign trade balance slowed down the y-o-y  decline from 22.6% to 9.3%, amounting to $ 1.2 billion over 8 months.