09:21, 15 January 2024

YEREVAN, JANUARY 15, ARMENPRESS. Over $3,3 billion worth of goods were exported from Armenia to its fellow Eurasian Economic Union (EEU) member states in the 11 months of 2023, which is more than the exports of the whole previous year. 

In 2022, Armenian exports to its EEU partners totaled 2 billion 510 million 271,6 thousand dollars, whereas in the 11 months of 2023 the exports comprised 3 billion 344 million 373 thousand dollars.

Armen Ktoyan, an economist who’s been the Head of Chair of Statistics at the Armenian State Economics University since 2017, told Armenpress that despite these figures there’s been no growth in the traditional exported goods to EEU and especially Russia. Meanwhile, the growth comprises goods that have a re-export component, goods that are not produced in Armenia.

According to the latest data issued by the Statistical Committee, Armenia’s trade turnover with its fellow EEU member states in January-November 2023 amounted to 36,9% of Armenia’s entire trade turnover with a volume of 6 billion 605 million 963 thousand dollars. Most of it, 6 billion 321 million 898 thousand dollars, was with Russia.

“When we are talking about [trade] with the EEU, we actually mean with Russia, because more than 90% of trade is with Russia. On one hand Russia is a market where we are more actively involved, on the other hand we must take into account that the share of reexports is rather significant. Besides, by increasing dependence on any single country, doesn’t matter if it’s Russia or any other country, we are basically limiting the opportunities to diversify foreign trade. In this case we aren’t getting too much of a beneficial situation for ourselves,” Ktoyan said.

According to the statistics, Armenian exports to EEU countries in the 11 months of 2023 grew 52% and comprised 3 billion 344 million 373 thousand dollars. This is nearly the half of Armenia’s total exports in the reporting period.

In January-November 2023, Armenia’s total exports amounted to 6 billion 946 million 382,5 thousand dollars. In January-November 2022 exports from Armenia reached 4 billion 800 million 308,5 thousand dollars. Within the EEU, most of the exports (3 billion 167 million 499,7 thousand dollars) went to Russia, growing 49,9% compared to the same period of 2022. Albeit incomparably smaller in volumes, Armenian exports to other EEU countries also grew. In January-November 2023, Armenia’s exports to Belarus comprised 85 million 999,3 thousand dollars (28,1% growth), exports to Kazakhstan grew over 4 times and amounted to 65,6 million dollars, and exports to Kyrgyzstan grew again over 4 times and comprised 25 million 207 thousand dollars.

“Exports of precious metals and gems grew by 1,3 billion, exports of machinery and equipment grew by 500 million dollars, while exports of cars grew by 300 million dollars. Basically these three make up the 2 billion dollars growth. We can say that the Armenian exports growth is entirely comprised of the growth of sectors which do not reflect the growth of Armenia’s economic competitiveness, but are mostly a manifestation of adapting to shock realities associated with reexports or the Russian-Ukrainian war,” the economist explained.

Armenia’s traditional exports to Russia, such as food and beverages, did not record growth, and furthermore dropped (such as food exports).

“Exports that have increased are goods that have a component of reexports in them, and are not made in Armenia, such as cars, equipment, generators and others. Yes, in other equal conditions, it’s very good that so much is being exported, but this must not create illusions that our economy has become so powerful that we can conquer new horizons,” Ktoyan said.