Armenia`s foreign trade rapidly diversifies. Turnover with USA, UAE  and EU countries grows rapidly

ArmInfo. Armenia is rapidly increasing its foreign trade with the USA (2.1-fold), UAE (2.4-fold)  and many EU countries (2-2.8-fold), in parallel, no less noticeably  increasing foreign trade turnover with Japan, Korea and Canada  (2.5-3. 5-fold), according to the data of the RA Statistical  Committee for January-August 2023.

The UAE, the USA and Germany are consolidating their positions in the  TOP-5 in terms of foreign trade with Armenia.  In particular, thanks  to the continued multiple growth of exports, the UAE is in the 3rd  place with a noticeable increase in the share of the total volume  from 7.8% to 13.3%, and the USA is subsequently in the 4th place as a  result of the same significant import growth with an increase in the  share in total imports from 3.8% to 6.3%

According to statistical data, Russia continues to lead the TOP-5 in  terms of foreign trade turnover with Armenia, China holds the second  place, the UAE ranks third, the United States ranks fourth, Iran has  moved up to the fifth place, and Germany and Italy are very close to  the TOP-5, occupying the 6th and 7th places respectively.

Russia continues to hold the leadership in foreign trade turnover in  general, and in exports and imports in particular. 

In particular, foreign trade turnover between Russia and Armenia for  January-August 2023 amounted to $4.2 billion, with a slowdown in  y-o-y growth from 71.7% to 56.3%, which is due to the continued  multiple growth of exports with a strong slowdown in import growth.  Thus, the volume of exports of goods from Armenia to Russia increased  2.1-fold  y-o-y, which is very similar to the rate of the same period  in 2022, when a 2-fold increase was observed. In parallel with this,  the growth of imports of goods from Russia to Armenia continued to  slow down - from 55.3% to 17.1%. Moreover, such dynamics in both  exports and imports is explained by the consequences of anti-Russian  sanctions, unprecedented in scale, applied by the collective West. As  a result, the volumes of export and import to Russia in  January-August 2023 amounted to 2.3 billion dollars and 1.9 billion  dollars, respectively. Russia's share in Armenia's foreign trade  turnover increased from 34% to 34.7% on a y-o-y term, against the  background of a significant increase in the share of exports - from  36.7% to 51.7%, with a decrease in the share of imports, from 32.3%  to 24.6%.  The 2nd place in terms of foreign trade turnover with  Armenia continues to be occupied by China, which previously occupied  this place both in terms of exports and imports, and now holds it  only in terms of imports, and has dropped to 3rd place in terms of  exports, having settled down after the United Arab Emirates. 

Thus, the volume of foreign trade turnover between Armenia and China  in January-August 2023 amounted to $1.4 billion, slowing down in  y-o-y growth from 38.5% to 35.4%. In particular, the volume of  exports of Armenian goods to China turned the dynamics from a 14.2%  decline to an 18.3% increase, amounting to 280.3 million (3rd place),  while the volume of imports slowed down in growth from 69.9% up to  40.6%, amounting to $1.1 billion (2nd place). 

 The share of China in the foreign trade turnover of Armenia,  decreased from 13% to 11.5%, year-on-year, against the backdrop of a  more noticeable decline in the share in exports from 8.1% to 6.3%  than in imports from 16% to 14.6%.  The United Arab Emirates has  risen to the 3rd place in terms of foreign trade turnover with  Armenia(from 5th a year earlier), and to the 2nd place in terms of  exports (while it was in the TOP-3 in terms of export volume already  a year ago). 

In particular, the volume of foreign trade turnover between Armenia  and the UAE for January-August 2023 amounted to $642.5 million, with  continued high  y-o-y growth of 2.4-fold, due to the continued  impressive growth of exports. Thus, the volume of exports of Armenian  goods to the UAE increased 2.6-fold- to $593.4 million year-on-year  (2nd place), and the volume of imports - by 37.9% to $49.1 million,  which in comparison with last year's pace looks somewhat more  restrained both in exports (from 4.5-fold) and in imports (from  42.5%). The UAE's share in Armenia's foreign trade turnover increased  over the year from 3.4% to 5.4%, due to an increase  in the share in  exports from 7.8% to 13.3% while maintaining the share in imports at  0.7%.

The USA took the 4th place in terms of the volume of foreign trade  with Armenia, and it rose to the 3rd place from the 5th placein terms  of the volume of imports. 

Thus, the volume of foreign trade turnover between Armenia and the  United States in January-August 2023 reached $505.1 million, with  y-o-y growth accelerating from 99.5% to 2.1-fold, due to continuous  multiple growth of imports, with worsening export dynamics. In  particular, the volume of exports of Armenian goods to the United  States deepened into decline, accelerating from 4.9% to 39.7%,  amounting to $31.8 million, and the volume of imports continued to  grow significantly, only imperceptibly slowing down in pace from  2.9-fold to 2. 6-fold, exceeding $473.3 million (3rd place). This  increased the US share in Armenia's foreign trade turnover on  y-o-y  terms from 3% to 4.2%, due to an increase in the share in imports  from 3.8% to 6.3% while the share in exports decreased from 1.8% to  0.7 %.

Iran moved down to 5th place in terms of foreign trade turnover with  Armenia, which also dropped to 4th pplace in terms of import volume,  while a year earlier it was in the TOP-3 by both indicators. Thus,  the volume of foreign trade turnover between Armenia and Iran for  January-August 2023 amounted to $453.6 million, with a strong  slowdown in y-o-y growth from 43.4% to 6.1%. In particular, the  volume of exports of Armenian goods to Iran amounted to $68.3 million  with a deterioration in y-o-y dynamics from 82.6% growth to 8.1%  decline, and the y-o-y growth from 37.1% to 9.1%. As a result, Iran's  share in Armenia's foreign trade turnover decreased over the year  from 5.5% to 3.8%, which was accompanied by a decline in the share  both in imports from 7.2% to 5.1%, and in exports from 2.5% up to  1.5%.

Russia holds the lead in terms of exports and imports, and the next  four places in terms of exports were taken as follows: the UAE,  China, the Netherlands ($204.3 million), and Iraq ($122.5 million),  and in terms of imports: China, the USA, Germany ($390.2 million) and  Iran.  Moreover, the deterioration of export dynamics with Germany,  with a 22.1% decline, was accompanied by a sharp acceleration of  import growth, up to 85.2%; a slowdown in import growth to 39.2% with  the Netherlands was accompanied by accelerated export growth of 42% ,  and with Iraq, the trend of imports increased 2.2-fold from a  significant decline, while the dynamics of exports changed from high  growth to a decline of 18.2%

Among the TOP-5 leaders in foreign trade with Armenia, three  countries have a negative balance; Russia has reached a positive  balance, and the UAE, as before, has a positive balance. Thus, the  negative balance of foreign trade between Armenia and China increased  by 50.3% to $821.1 million, with the USA it increased 3.4-fold to  $441.6 million, with Iran it increased by 13.7% to $316.9 million,  and the positive balance of the UAE increased  2.8-fold - to $544.4  million. The balance of foreign trade between Armenia and Russia  changed from a negative level of $508.5 million to a positive level  of  $448.3 million, since exports, which had increased significantly,  began to dominate.

In total, Armenia's foreign trade turnover for January-August 2023  amounted to $12 billion, with an emerging slowdown y-o-y growth from  56.2% to 53%, due to similar increasing rates of exports and imports.  In particular, imports increased by 53.8% and exports increased  almost as much - by 51.8%, the volumes of which amounted to $7.5  billion and $4.5 billion, respectively, while a year earlier the  growth rate was comparatively higher - imports by 58.2% and exports  by  52.9%.

Foreign trade turnover of Armenia with the EAEU countries for  January-August 2023 amounted to $4.4 billion, with a slowdown in  y-o-y  growth from 74.1% to 55.8%, against the backdrop of continued  high export growth - 2.2-fold  to $2.4 billion, with an increasingly  slowdown import growth to 15.6% (from 58.7% in 2022) - up to $1.9  billion. And the foreign trade turnover of Armenia with the EU  countries in January-August 2023 accelerated growth from 36% to  36.7%, amounting to $1.9 billion, due to accelerating import growth  from 44.8% to 64.3% while export dynamics deteriorated from 24.5%  growth to 5.3% decline, the volumes of which amounted to $1.4 billion  and $516 million, respectively.

As a result, the negative balance of foreign trade of Armenia for  January-August 2023, having slowed down in y-o-y growth from 67% to  57%, reached $3.1 billion. In particular, the balance of foreign  trade of Armenia with the countries of the EAEU changed  from a  negative level of $551.6 million to a positive level of  $489.5  million , and with the EU countries the negative balance increased  3-fold- to $843.1 million, while a year ago, a negative balance was  recorded in both directions: the growth with the EAEU was 10.4%  alone, and with the EU, a 2-fold increase was recorded.  It is  noteworthy that foreign trade with EAEU countries, moreover, with all  four countries, continues to grow (Russia, Belarus, Kazakhstan and  Kyrgyzstan), due to a significant increase in export volumes while  imports are decreasing, while the turnover of foreign trade with the  EU continues to grow at a high rate, which is due to the increase in  both export and import volumes by many European countries: France,  the Netherlands, Belgium, Slovakia, Lithuania, Finland, Austria,  Greece, Hungary, Romania, Portugal, Spain, Czech Republic, Sweden,  and due to a significant increase in imports with five more countries  - Germany, Denmark, Poland, Italy, Cyprus.

It is worth paying attention to the fact that in January-August 2023,  the y-o-y dynamics of Armenia's foreign trade with Ukraine also  sharply improved - from a 45.9% decline to 18.1% growth, due to the  emergence of the import trend from a 44% decline by 21.8% growth and  a sharp slowdown in the decline in exports from 51% to 5%.