Monday, February 20 2023 14:12
Karina Melikyan

Armenia`s GDP increased by 12.6% in 2022 against background of 64-78%  increase in exports and imports

Armenia`s GDP increased by 12.6% in 2022 against background of 64-78%  increase in exports and imports

ArmInfo. Armenia's GDP grew by 12.6% in 2022, far exceeding not only 5.7% in 2021, but also the pre-Covid 7.6% in 2019, reaching 8.497 trillion drams ($19.5  billion).  This is evidenced by the data of the RA Statistical  Committee published on February 20.

Notably, the CBA forecast came closest to real GDP growth, projecting  12.9% growth in 2022, while the IMF and WB expected a more moderate  growth 11% and 10.8% respectively.  The quarterly dynamics of GDP in  2022, as in previous years, was negative in Q1 alone - 36%, after  which a 19.6% increase was recorded in Q2, accelerating to 29.4% in  Q3, but already in Q4 it slowed down to 13.8%. As a comparison, we  note that in 2021, the quarterly dynamics of GDP was as follows: the  decline by 34.8% in Q1, was replaced by 17.5% growth in Q2, which  accelerated to 25.6% in Q3, but then slowed down to 13.3% in Q4.

The drivers of GDP growth in 2022 were mostly the service sector -  28.2%, the trade sector - 17%, the energy complex - 16.1% the  construction sector - 12.5%, and to a slightly lesser extent the  industrial sector - 7.9% . At the same time, the agricultural sector  managed to get out of the recession by 0.4% growth. A year earlier,  in 2021, GDP growth came from the service sector - by 7.8%, the trade  sector - by 7.5%, the construction sector - by 7.4%, the industrial  sector - by 3.3%, while the energy complex and the agricultural  sector were in decline by 0.6% and 1.1% respectively. In pre-Covid  2019, the highest growth was shown by the service sector, the  industrial sector and the trade sector - 15%, 9% and 8.9%  respectively, against the backdrop of a modest growth in the  construction sector by 4.6%, with a decline in the energy complex by  1.9% and the agricultural sector by 4.2%.   At the same time, Armenia's foreign trade turnover significantly  accelerated in growth from 17.7% in 2021 to 68.6% in 2022. In this  context, the same tangible acceleration of growth was observed both  in exports from 19.1% to 77.7%, and in imports - from 16.9% to 63.5%.  In the pre-Covid 2019, the upward dynamics of these indicators looked  much more modest: the growth of foreign trade turnover by 10.4% came  from the growth of exports by 9.4% and imports by 10.8%.

The Armenian economy reached such high growth under the influence of  factors that arose due to the Russian war in Ukraine and the  unprecedented and large-scale anti-Russian sanctions applied by the  Collective West, which forced many Russians to leave their homeland.  The arrival of a huge number of immigrants was also tangible in this  context. According to preliminary estimates of the authorities, about  65 thousand citizens have moved mainly from Russia, as well as from  Ukraine and Belarus. The immigrants also moved their capital and  business to the host country. The duration of this positive shock,  which increased not only the external, but also the macroeconomic and  fiscal indicators of Armenia, is still unclear, but according to the  assumptions of international financial organizations, a significant  part of the new immigrants will stay in Armenia for at least 2-3  years, and therefore it is very likely, will have some positive  effects.

It is appropriate to note that not only the Central Bank, but also  the International Monetary Fund and the World Bank forecasted a  slowdown in GDP growth for 2023, to 4.6%, 4.5% and 4.5%,  respectively. The WB's January outlook report notes: "  In the South  Caucasus, growth in 2023 is projected to halve to 3.3 percent. The  forecast deceleration reflects weakening momentum after the strong  rebound in 2021-22, the slowdown in the euro area, ongoing border  tensions between Armenia and Azerbaijan, and the ongoing contraction  of output in Russia, one of the South Caucasus's closest economic  partners. Recession in Russia and subdued growth in China are  anticipated to weigh on activity, especially in the South Caucasus  and Central Asia. Regional activity is also expected to continue to  be dampened by tightening financing conditions as central banks  grapple with abovetarget inflation." 

POST A COMMENT
Input digits     


News
Armenia`s authorities against their own targets - opposition MPArmenia`s authorities against their own targets - opposition MP
Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation 
S&P Global Ratings: Private sector debt burden in Armenia will  continue to growS&P Global Ratings: Private sector debt burden in Armenia will continue to grow
Mirzoyan: Armenia to increase bilateral trade turnover with Iran to  $3 billionMirzoyan: Armenia to increase bilateral trade turnover with Iran to $3 billion
Digital attache:  Armenian companies increasingly adopting  Russian  digital solutionsDigital attache:  Armenian companies increasingly adopting  Russian  digital solutions
Third Russian-Armenian construction forum to take place in YerevanThird Russian-Armenian construction forum to take place in Yerevan
In Armenia, industrial sector declining while industrial price index  risingIn Armenia, industrial sector declining while industrial price index  rising
Economic growth in Armenia slowed due to a decline in the industrial  sector and foreign tradeEconomic growth in Armenia slowed due to a decline in the industrial  sector and foreign trade
Armenian NA discussing amendments to Law on State Pensions Armenian NA discussing amendments to Law on State Pensions 
Armenia, China establishing cooperation in tourism industry Armenia, China establishing cooperation in tourism industry 
Security of property be in effect for Karabakh businessmen working in  Armenia - CBA Security of property be in effect for Karabakh businessmen working in  Armenia - CBA 
AraratBank: The Only Victory is the Smile of a Recovered ChildAraratBank: The Only Victory is the Smile of a Recovered Child
SRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue CommitteeSRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue Committee
Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025
Shirak Avia airline launches Krasnoyarsk-Yerevan-Krasnoyarsk flight Shirak Avia airline launches Krasnoyarsk-Yerevan-Krasnoyarsk flight 
Armenia`s Tourism Committee, St. Petersburg Convention and Exhibition  Bureau interested in cooperation Armenia`s Tourism Committee, St. Petersburg Convention and Exhibition  Bureau interested in cooperation 
Armenian CB proposes forfeiting AMD printing of status of state secret Armenian CB proposes forfeiting AMD printing of status of state secret 
USD, RUB transactions decreased in Armenia`s interbank foreign  exchange market, March 17 -21, 2025USD, RUB transactions decreased in Armenia`s interbank foreign  exchange market, March 17 -21, 2025
IDBank new branch is in the City of ArtashatIDBank new branch is in the City of Artashat
Armenia expecting clarifications from Russian partners on  rebroadcasting  agreement - MinisterArmenia expecting clarifications from Russian partners on  rebroadcasting  agreement - Minister
Ameriabank and CJSC Dinno present joint PayLink platform for businessesAmeriabank and CJSC Dinno present joint PayLink platform for businesses
Armenia, Russia  aim to boost their mutual agricultural trade volumeArmenia, Russia  aim to boost their mutual agricultural trade volume
Upper Lars checkpoint closed for transport Upper Lars checkpoint closed for transport 
EAEU GDP growth exceeds world average - minister EAEU GDP growth exceeds world average - minister 
Armenia, Russia interested in boosting mutual tourist flowsArmenia, Russia interested in boosting mutual tourist flows
Russia`s  Economy Minister announces  Armenia`s Strategic Development  Center`s new projectsRussia`s Economy Minister announces Armenia`s Strategic Development Center`s new projects
New campaign from IDBank on the occasion of Client’s DayNew campaign from IDBank on the occasion of Client’s Day
Armenia`s agricultural exports 8.3% up Armenia`s agricultural exports 8.3% up 
Armenia`s government to support domestic metallurgic companies Armenia`s government to support domestic metallurgic companies 
Team Telecom Armenia and Ericsson sign a MoU regarding strategic cooperationTeam Telecom Armenia and Ericsson sign a MoU regarding strategic cooperation
Opportunities for constructing power storage stations in Armenia discussed in BerlinOpportunities for constructing power storage stations in Armenia discussed in Berlin
Armenia fulfilled its obligations required for removal from  EU aviation Armenia fulfilled its obligations required for removal from  EU aviation "black list"
RA Government discussed  fiscal policy for 2026-2027RA Government discussed  fiscal policy for 2026-2027
ADB to support Yerevan Municipality in implementing new projectsADB to support Yerevan Municipality in implementing new projects
Armenia has 3.4 million microprocessing cards with  NFC chips,  accounting for 79% of the totalArmenia has 3.4 million microprocessing cards with  NFC chips,  accounting for 79% of the total
In 2024, salary fund in Armenia increased by 12% per annumIn 2024, salary fund in Armenia increased by 12% per annum
Finance Minister: If there were no conflict between Armenia and  Azerbaijan, the RA state debt would be less expensiveFinance Minister: If there were no conflict between Armenia and  Azerbaijan, the RA state debt would be less expensive
State Revenue Committee Head: Despite the absolute figures, tax  revenues in Armenia, compared to GDP, grew at an accelerated paceState Revenue Committee Head: Despite the absolute figures, tax  revenues in Armenia, compared to GDP, grew at an accelerated pace
Armenia`s Ministry of Finance to check public expenditure efficiency Armenia`s Ministry of Finance to check public expenditure efficiency 
Yerevan to host international tourism exhibition and business forum  ITF Armenia 2025Yerevan to host international tourism exhibition and business forum  ITF Armenia 2025
Activities supposed to pay VAT to be restricted in Armenia Activities supposed to pay VAT to be restricted in Armenia 
Large energy users to be allowed to sign energy contracts with  producers Large energy users to be allowed to sign energy contracts with  producers 
Armenia`s Central Bank forecasts 7% GDP growth in 2025Armenia`s Central Bank forecasts 7% GDP growth in 2025
Armenia`s Economic Competition Protection Commission fines  bookmaking offices AMD 1blnArmenia`s Economic Competition Protection Commission fines  bookmaking offices AMD 1bln
Armenia, Hong Kong to cooperate in abolishing double taxation Armenia, Hong Kong to cooperate in abolishing double taxation 
Armenia`s authorities incapable of solving budget planning problems -  Luys FoundationArmenia`s authorities incapable of solving budget planning problems -  Luys Foundation
RA Ministry of Finance, ADB signed loan agreement for the  construction of the northern section of the Sisian-Kajaran road as  part of the North-South transport corridorRA Ministry of Finance, ADB signed loan agreement for the construction of the northern section of the Sisian-Kajaran road as part of the North-South transport corridor
Armenia`s Ministry of Territorial Administration considering ADB`s  involvement in  reconstructing Dilijan and Pushkin tunnelsArmenia`s Ministry of Territorial Administration considering ADB`s involvement in reconstructing Dilijan and Pushkin tunnels
Martin Galstyan: Positive sentiment regarding a possible resolution  of the Russian-Ukrainian conflict is a key factor in strengthening  the rubleMartin Galstyan: Positive sentiment regarding a possible resolution of the Russian-Ukrainian conflict is a key factor in strengthening the ruble
CB Governor on 7.1% yield on Eurobonds: I don`t see anything  outrageousCB Governor on 7.1% yield on Eurobonds: I don`t see anything outrageous
Gevorg Papoyan: Armenia willing to enhance trade and economic ties  with  EU in all possible areasGevorg Papoyan: Armenia willing to enhance trade and economic ties with EU in all possible areas
Air Arabia to offer direct flights between Yerevan and Abu-DhabiAir Arabia to offer direct flights between Yerevan and Abu-Dhabi
Armenia`s Central Bank to leave the refinancing rate unchanged at  6.75%Armenia`s Central Bank to leave the refinancing rate unchanged at  6.75%
Armenia`s authorities plan taking out interest-free loans from  businesses for budget Armenia`s authorities plan taking out interest-free loans from  businesses for budget 
Armenia`s authorities seeking to replenish budget at any cost -  economist Armenia`s authorities seeking to replenish budget at any cost -  economist 
New barcoding system `headache` for businesses - official New barcoding system `headache` for businesses - official 
Russian gas supply to Armenia suspended Russian gas supply to Armenia suspended 
Pashinyan discusses product  labeling systemPashinyan discusses product  labeling system
Gevorg Papoyan: We are moving forward with  the current agenda, with a focus on diversifying the economyGevorg Papoyan: We are moving forward with  the current agenda, with a focus on diversifying the economy
The 5th issue of Eurobonds cost Armenia more than the previous ones:  Suren ParsyanThe 5th issue of Eurobonds cost Armenia more than the previous ones:  Suren Parsyan
Read more
Exchange rates
25.03.2025
RUB4.64-0.02
USD391.80-0.03
EUR423.89-1.13
GBP507.42-0.63
CAD274.180.59
JPY26.09-0.10
CNY53.97-0.06
CHF444.17-0.69