The growth in the re-export of gold and precious jewelry continues to drive overall exports, according to the World Bank's monthly report on Armenia's economic development.
In May, the volume of goods exports increased by 57.4%, driven by a fivefold increase in the export of precious and semi-precious stones, resulting from a sixfold increase in the import of these goods and a rise in re-export volumes to the UAE.
The volume of gold and precious jewelry exports reached 72.3% of the total export volume. The export of vehicles, which was one of the re-exported goods in 2023, decreased by 78% in May 2024.
Excluding the specified export categories (precious and semi-precious stones and vehicles), the overall export volume decreased by 4% in May.
From January to May, export and import volumes increased by 248% and 200% respectively, leading to a rise in the trade balance deficit.
Earlier, BMG, citing Armenian Finance Minister Vahe Hovhannisyan, reported that the flow of gold from Russia no longer passes through Armenia. The reason is administrative and is not related to Armenian-Russian relations.
Until now, the sharp increase in the jewelry sector in Armenia was largely the result of re-exporting gold from Russia to the United Arab Emirates and Hong Kong.
"Armenia exported $4 billion worth of Russian gold in a few months and became one of the countries providing revenue for the Russian budget. This economic growth is somewhat a result of inflating a bubble," said economist Suren Parsyan in an interview with BMG.
