Despite a downward trend, the re-export of gold and precious stones continues to be the main driver of Armenia’s export growth in 2024, according to a new World Bank report on the country’s economic development.
The report indicates that export volumes increased by 58.1% year-on-year, while imports grew by 18.7%. The primary factor behind export growth was a threefold increase in the supply of precious and semi-precious stones, including gold and jewelry. Excluding this category, export growth in August was 11% compared to the same period last year.
Balance of payments data for the first half of 2024 show an improvement in the trade deficit in the goods sector; however, there has been a deterioration in the services sector. The most significant decline occurred in the tourism sector, where the services balance decreased by 62% year-on-year. This is due to a 6.1% drop in tourist arrivals in the first half of 2024 and a 25% decrease in average spending per tourist following the high figures of 2023.
The situation was further complicated by a worsening income balance, primarily driven by a 28% reduction in remittances from abroad, which contributed to a decline in the current account balance.
