ArmInfo. In the first half of 2022, foreign investments in Armenia's real economy totaled $1.6bln (all types of investments), with a deceleration from the annual 35% growth to 23%. Direct foreign investments totaled $623mln or 40% of the total foreign investments, according to the official statistical data on gross investments, which served as a basis for ArmInfo experts' calculations of total investments during the first half of 2022 as compared with the corresponding period last year.
Russia is the leader in terms of foreign investments ($1.1bln) and direct foreign investments ($445.4mln), with an acceleration of up to 2.2-fold in the annual gross investments and 85% acceleration in direct foreign investments (from 50% and 28% respectively last year). During the period under review, Russian investments constituted 70% of foreign investments in Armenia's economy, with Russia's share in the gross direct foreign investments being 72%, against 39% and 65% respectively in the corresponding period last year.
In terms of foreign investments in Armenia's economy, Cyprus, Bailiwick of Jersey and the Netherlands are far behind Russia - $67.2mln, $49.1mln and $48.7 respectively. Specifically, the direct foreign investments from Cyprus showed a 52% growth, Bailiwick of Jersey recorded only direct foreign investments, with no direct investments received from the Netherlands, which had normally made modest investments in Armenia.
French investments, despite a substantial growth, actually proved much smaller as compared with the aforementioned figures - $15.5mln, with over 57% as direct foreign investments. Germany left the TOP-5 in terms of direct investments - $13.7mln. However, despite losing two points, it remained the 4th in the TOP-5 in terms of direct foreign investments ($13.5). The cause was the annual decline in both the figures - 97% and 85% respectively (against a 47% and 9-fold growth respectively last year).
Although the investments by the aforementioned states are far behind the Russian investments, they are showing much higher growth rates. Specifically, total investments by Cyprus showed a 110-fold annual growth (with a 38% growth in direct foreign investments), French investments, a 5.6-fold growth (with a 5- fold growth in direct foreign investments), investments by Bailiwick of Jersey, a 3.2-fold growth (only direct foreign investments) and investments by the Netherlands, a 3.1-fold growth (with a 4.8-fold decline in direct foreign investments).
Armenia's Statistical Committee had been releasing quarterly data on foreign investments in terms of Armenian drams and gross investments from 1988 to June 20, 2022. To prepare this report, ArmInfo experts calculated the volumes for the reporting period on the basis of the data on gross investments in the first half of 2022 and 2021. (on June 30, 2022, the AMD/USD exchange rate was 407.21/$1). However, these statistical data do not reflect the real investments during specific periods, but they do show the general trends.
Last year, foreign investments in Armenia's real economy (all types of investments) showed a 54% growth (against a 39% decline in 2020), totaling $2.8bln. Direct foreign investments totaled $798mln (29% of the total foreign investments against 26% in 2020) - a 71% growth as compared with 2020 (against a 21% decline in 2020). Russia was the leader in terms of both foreign investments and direct foreign investments ($1.5bln and $537mln respectively), with a 2.2-fold annual growth in the gross foreign investments (against a 34% decline in 2020) and a 53.4% growth in direct foreign investments against a 9.3% decline. In 2021, Russia's share in the gross investments reached 53% against 37.4%, with its share in direct foreign investments declining from 75.1% to 67.3%. In terms of investment volumes, Russia was followed by Germany, Cyprus, the Netherlands and France.
