In the first half of 2024, Armenia's investment landscape underwent significant changes, according to data from the country's Statistical Committee.
The total net flow of foreign investments in the real sector of the economy sharply declined, dropping from a positive $146.5 million in the first half of 2023 to a negative $91.5 million in the same period of 2024. An even more dramatic decrease was observed in foreign direct investments (FDI), which plummeted from $281.5 million to negative $55.0 million.
The most surprising shift occurred in the composition of investing countries. Russia, which was not among the top five investors previously, surged to the first position with $26.4 million in investments, 2.3 times higher than the previous year. Meanwhile, the UAE, which led the previous year with $269.2 million, ranked second in capital outflows, withdrawing $32.7 million.
Following Russia in terms of positive investments were Sweden ($23.5 million), the United States ($22.0 million), Switzerland ($18.6 million), and the Netherlands ($14.7 million). Notably, both Sweden and the Netherlands were among the countries with negative investment flows a year ago.
The sectors attracting investments have also shifted significantly. Russian capital is now 91% concentrated in metal ore extraction, while investments in telecommunications and financial intermediation have ceased.
Swedish investments are almost entirely (99%) directed toward the metallurgy sector. American capital continues to support the IT sector and metal production but has reduced its investments in energy and the hotel industry.
