Armenia’s foreign trade turnover continues to decline

Armenia has been trading less with the outside world. The downward trend in foreign trade turnover persisted during the period from January to September of this year.

In particular, total trade turnover fell by 39.3%, with exports down 46.8% and imports down 33.4%. To understand the reasons behind the decline, we should highlight the countries whose reduced mutual trade turnover contributed to this situation. Of course, among them are Russia and the UAE. It is clear that this concerns the reduction of re-export flows of gold through Armenia’s territory, but the problem is not limited to that.

A significant share of goods imported into Armenia—33.6%—comes from Russia. The Russian market is our leading supplier. A similar picture is observed in exports. For example, while exports to other countries account for 50.5% of the total volume, with a fairly long list of destinations, exports to Russia alone make up 37.2%. This also emphasizes that Russia is our leading export market.

Therefore, the decline in foreign trade turnover with our primary trading partner has a significant impact on overall trade. And the problem is not only a matter of statistical changes: in reality, Armenian products suffer due to reduced exports to their main external sales market.

In the context of arguments about our right and ability to purchase goods in other markets, let us once again confirm and reinforce: yes, Armenia should diversify its import market, especially in the case of strategically important goods. This is extremely important. But finding sellers of certain goods is always much easier than finding buyers for one’s own. In the context of bilateral relations, this circumstance must be taken into account.