The growth in Armenia’s exports continues to be driven by the export and re-export of gold and precious jewelry. This is stated in a World Bank report on the country’s economic development.
In April 2024, export volumes increased 2.9 times due to a tenfold increase in precious and semi-precious goods. The share of these goods in total exports rose from 24 percent in April 2023 to 82 percent in April 2024.
On the other hand, imports of precious and semi-precious stones increased more than 20 times, resulting in a net import balance in this commodity group of 1 billion USD.
Apart from the export of agricultural products such as cattle and vegetables, there has been a significant decline in all other types of exports, including paper products and minerals, especially machinery and vehicles.
Excluding precious and semi-precious stones, as well as equipment and vehicles (the two products that were mostly re-exported last year), the overall export volume in April increased by only 3.6 percent.
The primary export destination remains the United Arab Emirates, which is the main market for Armenia’s gold and precious jewelry.
Earlier, BMG reported, citing Armenia’s Minister of Finance Vahe Hovhannisyan, that the flow of gold from Russia no longer goes through Armenia. The reason is administrative and not related to Armenian-Russian relations.
Until recently, the sharp increase in Armenia's jewelry sector was mainly due to the re-export of gold from Russia to the UAE and Hong Kong. Economists note that this growth is largely driven by external factors, making it unstable and potentially threatened by changes in external conditions.
"Armenia exported $4 billion worth of Russian gold in just a few months, becoming one of the countries generating revenue for the Russian budget. This economic growth is, in a sense, a result of a bubble,” Suren Parsyan told BMG.
Thanks to this factor, Armenia’s GDP in the first quarter increased by 9.2% compared to the same period last year, exceeding $5 billion. In the first quarter of 2024, Armenia’s GDP per capita was 653,721 drams ($1,685) compared to 608,356 drams ($1,560) in the same period last year.
Armenia's economic growth in the 2024 state budget is projected at 7%, with inflation set at 4% (±1.5%).
