Double-digit growth of import prices observed in Armenia`s foreign  trade

ArmInfo.In July 2024, import prices in Armenia's foreign trade increased by 12.1% annually, while  export prices only grew by 7.3%. The previous year, import prices had decreased by 13.5%, while export prices, on the contrary, had showed a higher growth rate of 14.2%.

This is evidenced by the data of the  Statistical Committee of the Republic of Armenia.  The same  statistical report provides annual prices dynamics in economic  sectors as of July 2023 and 2024.  Thus, in the industrial sector,  the industrial production price index showed slow growth, decreasing  from 6.9% to  3.7%, compared to the previous year. Freight  transportation prices also continued to rise, increasing   from 4.6%  to 11.6% over the same period. The construction sector saw a reversal  in price dynamics, shifting from a 0.2% decline to 1.4% growth  compared to the previous year. 

The agricultural sector experienced a noticeable shift from decline  to growth in the price index. Sales prices of agricultural products  increased by 0.5%  after a 11.7% decline in the previous year, while  the cost of agricultural inputs shifted from an 18.5% decline to 1.9%  growth. In July 2023, a deflation of 0.1% y/y was observed in  Armenia's consumer market, but by July 2024 annual inflation of 1.4%  was recorded. It is worth noting that, according to statistical data,  economic activity also saw an increase with a 6.2% annual growth in  July 2024, compared to a similar 6% growth the previous year. 

The growth drivers, as a year ago, were the construction and trade  sectors, with growth of 17.7% and 14%, respectively compared to 17.8%  and 20.4% the previous year. Modest growth was seen in the service  sector - 4.9% and the industrial sector - 2.2%, while the service  sector had shown higher growth of 5.8% the year before, and the  industrial sector had declined by 2.4%. Data for the agricultural  sector is only published quarterly, and according to the report for  the first half of 2024, growth in the agricultural sector accelerated  to 4% from 2% the previous year. In Armenia's foreign trade in July  2024, there was a significant increase in annual growth in both   exports, from 15.6% to 42.8% and imports, from 19.7% to 30.7%.