Increase in trade turnover between Armenia and Russia is conditioned  by multifold growth in exports

ArmInfo.Russia holds the leadership among Armenia's foreign trade partners. According to the RA Statistical Committee, Russia is leading not only in terms of the  total volume of foreign trade, but also in terms of exports and  imports in particular.

This is evidenced by the data of the RA Statistical Committee, according to which the foreign trade turnover between Armenia and Russia exceeded $2.6 billion in January-August 2022 with a sharp acceleration in y-o-y growth from 11.8% to 71.7%,  mainly due to multifold growth in exports.

In particular, the volume of exports of goods from Armenia to Russia  significantly accelerated the y-o-y growth from 30.9% to 2-fold,  which, at a slightly less restrained upward pace, was also observed  in the volume of imports of goods from Russia to Armenia - from 4% to  55.3%, with the volumes of  $1.062 million and $1.580 billion,  respectively.

As a result, Russia's share in Armenia's foreign trade turnover  increased from 30.7% to 33.8% year-on- year, and a noticeable  increase in the share in exports from 27.3% to 36.3% was accompanied  by a slight decrease in the share in imports from 32.8% % to 32.2%.

China holds the 2nd place in terms of foreign trade turnover,  particularly export and import. But, unlike Russia, the y-o-y growth  in the volume of foreign trade between Armenia and China accelerated  more moderately in January-August - from 31.9% to 38.5%, reaching  $1.022 billion. Moreover, the growth was supported by a noticeable  acceleration of the upward trend of imports - from 12.7% to 69.9%,  while the dynamics of exports reversed from 84.4% growth to a 14.2%  decline, as a result of which the volumes of exports and imports  towards China amounted to $236.98 million and $784.8 million,  respectively. The share of China in the foreign trade turnover of  Armenia decreased year-on-year from 14.7% to 13.1%, against the  backdrop of a significant decline in the share in exports from 14.4%  to 8. 1% with a moderate increase in the share in imports from 14.9%  to 16%.

Iran ranks 3rd both in terms of total foreign trade turnover and in  terms of imports. Thus, the y-o-y growth in the volume of foreign  trade between Armenia and Iran continues to accelerate - from 15.3%  to 43.4%, reaching $427.4 million.  This was driven by an improvement  in the trend of exports from a decline of 28.9% to an increase of  82.6%, and an accelerated growth in imports from 27.9% to 37.1%, the  absolute value of which, according to the results of 8 months of this  year, reached $74.4 million and $353 million, respectively. However,  Iran's share in Armenia's foreign trade turnover decreased  year-on-year from 6% to 5.5%, and the decline in the share in imports  from 8.3% to 7.2% was accompanied by an imperceptible increase in the  share in exports from 2.1% to 2. 6%.

Germany holds the 4th place both in terms of foreign trade turnover  ($284.5 million with a y-o-y growth of 58.4%) and in terms of imports  ($210.8 million with a y-o-y growth of 64.9%). And the countries  continue to replace each other in the 5th place month by month in  terms of foreign trade with Armenia, and in January-August 2022, the  UAE closed the top five - $ 265.2 million, with a y-o-y increase of  3.5-fold, due to a 4.5-fold sharp increase in export volumes - up to  $229.5 million, taking the 3rd place on this indicator.

After Russia and China, UAE, Switzerland ($184.3 million) and  Bulgaria ($175.7 million) hold the next three places in terms of  exports, and Iran, Germany and the United States ($187.1 million) in  terms of imports. Moreover, in the direction of Switzerland, the  decline in exports by 16.4% was accompanied by a slight 3.8% increase  in imports, in the direction of Bulgaria, the opposite picture was  observed - an increase in exports by 6% with a decline in imports by  24.4%, and in the direction of the United States, an 2.9-fold  increase of imports was recorded, with a decline in exports by 4.9%.

Among the top five countries in terms of foreign trade with Armenia,  four countries maintain a negative balance, and only the UAE has a  positive balance. Thus, the negative balance of Armenia's foreign  trade with Russia increased in January-August 2022 by 4.5% per annum  to $517.7 million, with China - increased 3-fold to $547.8 million,  with Iran - by 28.6% to $278.6 million, with Germany - increased 2-  fold to $137 million, and the positive balance of the UAE increased  7.4-fold- to $193.9 million.

In total, Armenia's foreign trade turnover in January-August 2022  exceeded $7.8 billion, with a y-o-y increase of 56.2% (from 12.7% a  year earlier). In particular, an increase in volumes was observed  both in exports - by 52.9% to $2.9 billion, and in imports - by 58.2%  to $4.9 billion, while a year earlier both items showed moderate  growth - exports by 21.8 % and imports by 7.7%.

The foreign trade turnover of Armenia with the EAEU countries in  January-August 2022 amounted to $2.8 billion, with a sharp  acceleration in y-o-y growth from 11% to 74.1%, against the backdrop  of a tangible increase in both -in exports - 2-fold (from 30.8% a  year earlier) - to $1.1 billion, and in  imports - by 58.7% (from  2.9% a year earlier) - up to $1.7 billion. And Armenia's foreign  trade turnover with the EU countries in January-August 2022  accelerated y-o-y growth from 22.8% to 36%, reaching $1.4 billion,  due to a sharp acceleration in import growth from 7.9% to 44.8%,  while export growth slowed down from 49.9% to 24.5%, the volumes of  which amounted to $827.1 million and $544.8 million, respectively. As  a result, the negative balance of Armenia's foreign trade increased  by 66.8% from a 9.3% decrease in January-August 2022, reaching $1.98  billion. In particular, the negative balance of Armenia's foreign  trade with the EAEU countries increased in January-August 2022 by 10,  5% per annum - up to $561 million, and with the EU countries it  increased 2.1-fold - up to $282.4 million, while a year earlier there  was a decline in the balance of 16.3-43.7%.

It should be noted that, the forecasted growth of export and import  for 2022 by the Central Bank of RA (in September) and the World Bank  (in October) has been improved to double digits. In particular, the  Central Bank of the Republic of Armenia expects an increase in  exports by 28% and imports by 24%, while the WB expects a more modest  16.3% in exports and 18.6% in imports.