Increased exports and re-exports not any longer essential for GDP  growth - minister

ArmInfo. The statistical data on the economic situation in Armenia have undergone some changes.  This was stated by the Minister of Economy of the Republic of Armenia Gevork Papoyan in an interview with the Public Television of the Republic of Armenia. 

At the same time, as the Minister noted, such factors as the increase  in the export and re-export of gold products, financial receipts from  Russia, which were observed in the last two years, the increase in  the number of relocators, the number of which began to decrease, etc.  no longer play a significant role in the growth of the country's GDP.  For example, as Papoyan noted, according to the data of the  Statistical Committee of the Republic of Armenia presented the day  before, the indicator of export and re-export of gold and jewelry  products has been reduced to zero. According to the results of last  year, after recalculation, the GDP growth in 2023 was not 8.7%, but  0.4% less - 8.3%. According to the results of the first quarter, the  growth rate of the RA economy was at the level of 9.2%, which after  revision amounted to 6.6%, and according to the results of the second  quarter it was equal to 6.5%. Thus, as the minister noted, the GDP  growth rate is very close to the target indicator of annual economic  growth of at least 7%.

At the same time, as the minister noted, if we exclude the  above-mentioned reasons for the country's GDP growth, we can conclude  that they no longer play a significant role in the growth of the  Armenian economy. Ultimately, Papoyan continued, this indicates  qualitative changes in the structure of the economy. He added that  the ultimate goal of the RA government is not to increase export  volumes, but to create conditions for the production of finished  goods. 

Currently, a significant part of exports is made up of semi-finished  products, in particular, made of gold, metals and others. According  to the political line of the country's authorities, all producers of  semi-finished products will be given time to switch to the production  of finished goods. As of now, there are at least four enterprises in  the country that have begun the transition to the new model, and  these plants are expected to begin producing finished goods by the  end of this year.

The day before, ArmInfo, citing revised data from the Statistical  Committee, reported that Armenia's GDP in the first half of 2024  exceeded 4.2 trillion drams or $10.6 billion.

The slowdown in annual GDP growth in the first half of 2024 was  largely caused by a strong slowdown in the growth of the services  sector - from 16.8% to 4.4%, as well as a less noticeable slowdown in  the growth of the trade sector - from 23.6% to 22.9% and the  construction sector - from 17% to 15.7%. But at the same time, the  industrial sector sharply accelerated in annual growth from 1% to  18.2%, and the agricultural sector quietly advanced in modest growth  - from 2% to 4%.

The energy sector improved its dynamics, moving from a 2.7% decline  to 2.2% growth. At the same time, Armenia's foreign trade turnover  demonstrated a sharp acceleration in annual growth - from 72.9% in  the first half of 2023 to 2 times in the first half of 2024. This was  largely due to a 2-fold jump in exports with an 86.5% increase in  imports, against almost the same increase in exports and imports a  year earlier - by 72.8% and 73%, respectively.