RA Minister of Economy: Armenia and Georgia have great potential for  collaboration 

ArmInfo. Collaboration between Armenia and Georgia holds great potential in key sectors that can contribute to the development of the business environment and attract investment. This was stated by RA Minister of Economy Gevork Papoyan in an interview with kvira.ge. 

According to him, trade and economic relations between Georgia and  Armenia are steadily growing with significant potential for  further  development and diversification.  The minister noted that Armenia's  foreign trade turnover with Georgia in January-September 2024 was  $702.6 million, a 13.5% decrease compared to  the same period last  year. In January-September 2024, Armenia's exports amounted for 17.6%  in trade turnover with Georgia, while imports made up the remaining  82.4%. In January-September 2024, exports totaled $123.7 million,  which is 12.3% more compared to the same period of the previous year,  while imports amounted to $576.1 million, a decrease of 17.6%. The  main goods exported by Armenia to Georgia are cigarettes and cigars  ($23.5 million), semi- finished products made of iron or non-alloy  steel ($18.9 million), and bottles, jars and other glass containers  ($14.8 million). These goods account for 50.6% of total exports to  Georgia in January- September 2024.

In return, Georgia mainly supplied cars and other vehicles ($76.1  million), ethyl alcohol, alcoholic beverages ($35.9 million), and  medicines ($27.7 million) to Armenia. These goods, as Papoyan noted,  account for 24.3% of all imports from Georgia in January-September of  this year.  The minister noted that the main factor attracting  Armenian capital to Georgia is the geographical proximity of the  countries and common cultural values, as well as historical and  cultural ties that facilitate relations and business processes. Among  the promising areas for investment, he named tourism and the hotel  business.

Papoyan highlighted the potential impact of infrastructure projects  like the "Crossroads of Peace" and the "Black Sea Submarine Cable" on   the region and on the economic relations between Armenia and Georgia.   "The Crossroads of Peace project", initiated by the Armenian  government, aims to create a transport and logistics infrastructure  connecting the Black Sea, the Persian Gulf and the Gulf of Oman  through  Armenia.  This project involves the development of road and  rail routes, pipelines, power lines and Internet cables, which could  enhance trade and economic ties between the countries of the region.  The Black Sea submarine cable will establish connectivity between  Black Sea countries, including Georgia, and Europe.

He emphasized the importance of renewable energy sector projects and  energy efficiency initiatives aimed in attracting significant  investments in the energy sector. These developments not only ensure  energy security, but  also generate additional jobs and foster new  business opportunities. The role of digital technologies and  information communications is also important. Strengthening IT  infrastructure and promoting digitalization in business processes in  both countries will open up new opportunities for startups and  innovative companies, thereby attracting foreign investors to  high-tech industries. Collaboration between the countries in  agriculture and the food industry can also boost production volumes  and improve product quality, leading to the creation of new export  markets and  investment opportunities in the agro- industrial  complex.

 "The development of tourism is also an important aspect. Joint  promotion of the potential of Armenia and Georgia will contribute to  the growth of the tourism industry. This will also strengthen  economic ties between the two countries, ultimately improving the  business climate in the region as a whole.  Additionally, enhancing  transport corridors, improving infrastructure and cooperation,  modernizing customs procedures will increase trade volumes and reduce  costs," the minister concluded.