GDP
2023: GDP growth of 8.7%. Fastest Growing Industry - ICT
in GDP Armenia 2023, it grew by 8.7% compared to 2022, and the fastest growing industry in the country was the information and communication technologies (ICT) market. This is evidenced by the data of the Statistical Committee of the Republic of Armenia, published in February 2024.
According to the agency "Prime" with reference to the materials of the department, the gross domestic product of Armenia in current prices at the end of 2023 reached 9.5 trillion drams (about $23.5 billion). The volume of the ICT industry during this time reached 524.4 billion drams ($1.3 billion), which is 36.5% more than a year ago. Wholesale and retail trade in the country showed an increase of 24.8% with a volume of 1.2 trillion drams ($3 billion). In the manufacturing industry, an increase of 3.9% was recorded (up to 1.05 trillion drams/$ 2.6 billion), in agriculture - by 0.2% (up to 800 billion drams/$ 2 billion), in construction - by 15.7% (up to 653.5 billion drams/$ 1.6 billion).
According to the results of 2023, the volumes of the financial and insurance sector in Armenia amounted to 701.22 billion drams ($1.7 billion). At the same time, in this area, according to statistics, a decline of 8% was recorded.
As for the structure of GDP, trade (wholesale and retail) in 2023 occupied 12.7% of the Armenian economy, manufacturing - 11.1%, agriculture - 8.4%, real estate - 8.3%, financial sector - 7.4%, construction (not to be confused with the sale of real estate) - 6.9%. The share of the IT and telecommunications sector was 5.5%, healthcare - 5.4%, transport industry - 3.9%, extractive industry (including both mines and sand and stone quarries) - 2.9%, power - 2.6%.
The indicator of economic activity in Armenia for 2023 increased by 9.4%, but it is somewhat different from GDP, since it does not include indirect taxes (VAT and excise tax), as well as services of the financial and banking sector.[1]
2022: GDP growth forecast by 12.9% thanks to the influx of Russians during the conflict in Ukraine
Armenia's economy will grow by 13% of GDP this year thanks to a large influx of Russians, said local Central Bank Chairman Martin Galstyan in October 2022. According to preliminary data, Armenia's GDP has already grown by 13% in the second quarter of 2022. At the end of the year, growth will be 12.9%, and inflation - about 10%, according to the September forecast of the Central Bank of the republic.
2020: 7.5% drop
GDP Armenia at the end of 2020, it decreased by 7.5%, as evidenced by the data of the Statistical Committee of the Republic. The Armenian Central Bank estimated the fall of the economy at 7.8%.
Before the start of the COVID-19 pandemic, the Armenian government expected an increase in the country's GDP by 4.9% by the end of 2020 after an increase of 7.8% in 2019. However, the spread of the coronavirus led to a noticeable deterioration in the economic situation, as a result of which the GDP forecast was repeatedly revised in the negative direction. The international rating agency Fitch Ratings predicted that the shock from the coronavirus will slow down Armenia's GDP growth from 7.6% in 2019 to 0.5% in 2020.
For 2020, GDP growth was noted only in the first quarter, when it amounted to 3.9%, for the other three quarters of 2020, GDP showed a negative indicator. So, in the second quarter, the decline amounted to 13.7%, in the third quarter GDP decreased by 9%, and in the fourth quarter - by 8.8%. In the nominal volume of GDP of Armenia at the end of 2020 amounted to 6.18 trillion drams. At the same time, GDP per capita in Armenia at the end of 2020 amounted to about $4269.
According to the National Statistics Committee, the indicator of the economic activity of Armenia, according to preliminary data, in January-December 2020 registered a decline of 7.5% compared to the same period in 2019. At the same time, in December 2020, compared to November 2020, the figure increased by 27.7%, although an annual decline of 8.8% was registered.
According to the calculations of the Statistical Committee of Armenia, Armenia's foreign trade turnover in 2020 amounted to $7.1 billion, falling by 13.2% compared to the previous year. Exports decreased by 3.9% to $2.55 billion, imports - by 17.7% to $4.56 billion
The volume of industrial production in Armenia at the end of 2020 decreased by 0.9% to 2.7 trillion drams. Agricultural production increased by 1.4% to 819.31 billion drams.
In the construction sector, a decline of 9.5% to 413.83 billion drams was recorded, in the trade sector - by 14% to 2.86 trillion drams, in the services sector - by 14.7% to 1.71 trillion drams.[2]
2019
In 2019, incoming foreign remittances (mainly from labor migrants and diaspora representatives who send money to their families at home) account for 12% GDP Armenia of and 14.5% of GDP. Georgia For the most part, these are translations from. Russia
Financial system
External public debt
Key rate
Remittances
2022: Transfer of record $3.6 billion from Russia to Armenia
In 2022, individuals sent record volumes of remittances from Russia to neighboring countries amid the conflict in Ukraine.
About 108-110 thousand Russians arrived in Armenia in 2022, Minister of Economy of the country Vagan Kerobyan reported in March 2023.
Following the results of 11 months of 2022, the Central Bank of Armenia reported that the volume of transfers quadrupled compared to 2021 - to $3.1 billion. This is a record indicator of available statistics.
In December 2022, $422.9 million was transferred from Russia to Armenia, which is five times more than in the same period of the previous year, according to statistics from the Central Bank of Armenia. In just a year, a little less than $3.6 billion was received in this direction. For comparison, in 2021, only $865.6 million was received from Russia to the republic.
Remittances to Armenia from January to September 2022 increased by 155% compared to last year to $1.7 billion, Prime reports, citing Armen Nurbekyan, director of the macroeconomic department of the Central Bank of the republic.
The "very large figure" is the result of an increase in remittances from Russia, he stated. And he noted that such an influx is "almost entirely due to the increase" in the number of transfers from Russians. Nurbekyan also pointed out that this indicator directly affects the formed exchange rate.
Power
2024
85% of gas comes from Russia and 15% from Iran
In 2024, the Armenian gas sector remains a vertically integrated monopoly, the operator and owner of which is Gazprom-Armenia, which is fully owned by the Russian Gazprom. However, according to the Energy Strategy, the Armenian government intends to revise all legislation in the gas sector in 2024 and begin to develop a new Gas Law.
Armenia, along with other members EEU , plans to launch a common EAEU gas market in 2025. The agreement signed by the EAEU members in 2019 obliges Armenia to allow third parties to access the gas market and carry out reforms aimed at facilitating cross-border gas trade.
Armenia receives about 85% of gas from Russia through pipelines passing through Georgia (one of the sections was transferred to Azerbaijan in the spring of 2024).
The remainder of the gas is imported from Iran. But you need to understand that Iranian gas is used only for the production of electricity under the formula "gas in exchange for electricity." This works as follows: the Armenian side receives from Iran 1 cubic meter of gas in return for the obligation to supply back 3 kWh of electricity. The EPC and Hrazdan TPP participating in the program generate not 3, but 4 - 4.5 kWh of electricity from one cubic meter of gas. Thus, approximately 1-1.5 kWh of electricity remains in Armenia. This is also beneficial for the Iranian side, since it eliminates the need to build TPPs in the northern provinces.
USAID pushes through project to cut off Armenia from gas supplies from Russia
At the end of March 2024, the US agency USAID held a regular meeting on the topic of "energy security" of Armenia.
The task of the program is to reduce "Armenia's dependence on Russian gas supplies." Read more here
Rosatom is working to extend the work of Metsamor NPP
The surviving second unit, built during the USSR Metsamor NPP, covers almost the entire base load (33%) in the power system of Armenia for 2024.
The VVER-440 project V-270 old and unique due to the features of the site.
As of March 2024, Rosatom is already engaged in work to extend the operation of the Metsamor nuclear power plant until 2036.
2023: Armenian Nuclear Power Plant Modernization Plan
In June 2023, there was a discussion about the fate of the Armenian nuclear power plant and the need to find an alternative to it. Doctor of Technical Sciences Vahram Petrosyan said that by the decision of the government, the functioning will be extended until 2036 after the modernization.
However, the contractor has not yet been selected. The Armenian side is considering various options for work at nuclear power plants and future projects, ranging from the Russian Rosatom to American and French companies. One of the requirements is to attract local specialists.
Armenia CB gives priority to low-capacity power units, which are not on the market at this time. The economic downturn due to the lack of large industrial consumers, as well as practically non-working railway transport, makes the use of powerful reactors ineffective.
Russia massively produces new power units for 1200 MW, which is too much for the needs of Armenia. Electricity from nuclear power plants of this capacity outside the morning and evening maximums will simply have nowhere to go, wrote the Rybar channel.
The country's energy system is balanced by about 400-440 MW of nuclear power generation, which is the difficulty. Nobody is building reactors at such a capacity now. There are promising projects of commercial stationary low-power reactors both in Russia and in France and the United States, but so far they are only on paper.
But this does not prevent the United States from promoting contracts for the installation and supply of not yet existing modular low-power nuclear power plants.
2020: Low per capita energy consumption
and
1995: The second unit of the nuclear power plant resumed operation
The second unit of the nuclear power plant resumed work in 1995 and continues to work in 2024.
1988: Shutdown of the Armenian NPP and damage to the first unit
The Metsamor nuclear power plant was originally built according to a special V-270 project with increased seismic resistance. The design withstood the devastating 1988 Spitak earthquake, confirming the correctness of calculations and embedded solutions. But in the wake of radiophobia after the Chernobyl accident, the authorities reinsured and stopped the nuclear power plant.
It was not expected to resume operation and damaged the first unit, cutting out parts of the bodies of the steam generators for research.
Foreign trade
Zangezur corridor
Main article: Zangezur corridor
2024
Trade with Russia in the first half of the year reached $8.3 billion
In the first half of 2024, the trade turnover of Russia and Armenia grew two and a half times, exceeding $8.3 billion.
Sharp rise in imports from China
Total exports China to, and Armenia Azerbaijan Georgia reached $1.1 billion in the first quarter of 2024 compared to $0.4 billion in the first quarter of 2019. This 150% growth is clearly not to meet any boom in domestic demand in the Caucasus. All these goods are sent to, Russia said chief economist IMF Robin Brooks in May 2024.
Multiple growth in exports to the UAE due to restrictions on Russian trade
2023: EU and China imports redirected to Russia, with trade reaching $7.4 billion
Trade turnover reached $7.4 billion last year.
2022
Armenia became the fourth largest exporter of chips for the Russian defense industry
On July 28, 2023, it became known that Armenia it became the fourth largest exporter of semiconductor products for the defense industry. Russia
According to Bloomberg, in the formed geopolitical situation, Armenia has become one of the centers for the re-export of semiconductors and other dual-use goods to the Russian Federation, bypassing American and European sanctions. In April 2023, US Deputy Treasury Secretary Wally Adeyemo visited Armenia to convince its government to take tough measures on the supply of sanctioned goods to Russia. Since then, the authorities of this country have tightened export rules and introduced new control over the shipment of products to the Russian Federation. It is emphasized that the regulators of Armenia are not aware of attempts to export this or that military products to any country without proper permission.
Armenian Finance Minister Vahe Hovhannisyan said that exports of products from the republic to Russia in 2022 increased by 187% compared to the previous year. According to the Statistical Committee of Armenia, in 2022, the republic's foreign trade turnover reached $14.129 billion, which is 1.7 times more than in 2021. At the same time, exports increased 1.8 times - to $5.36 billion, and imports increased 1.6 times, reaching $8.77 billion.
While Armenia has a prosperous technological sector, the country has not established the production of semiconductors and complex equipment. The fact that chips are supplied to the Russian Federation in the current geopolitical situation, according to the British group Conflict Armament Research (CAR), "demonstrates the problems faced by export control authorities and industry when monitoring complex and opaque supply chains."[3]
Cognac exports from Armenia to Russia continue to grow
In 2022, 54.2 million liters of cognac were delivered from Armenia to Russia, which is 12.8% more than a year earlier. In comparison with 2018, the export of these alcoholic beverages increased by 85.2%, analysts at BusinesStat calculated. Their data was released in May 2023. Read more here.
Growth in trade turnover with Russia to $5 billion
The volume of foreign trade turnover between Russia and Armenia in 2022 for the first time exceeded $5 billion (in 2021 - $2.6 billion) - CCI of the Russian Federation.
The trade turnover between Russia Armenia and Armenia for 9 months of 2022 grew by almost 80% of the city and amounted to 3.2 billion. dollars
The growth of exports to Russia of grape wine doubled to 280 thousand decaliters, fruit wines by 53% to 520 thousand decaliters
According to the results of 10 months of 2022, the volume of supplies of Armenian grape wines in the Russian Federation amounted to 280,000 decaliters, which is 2 times more than in the same period of 2021. During the specified period, the volume of fruit wine supplies from Armenia increased by 53% and reached the volume of 520,000 decaliters.
According to the results of the first half of 2022, against the background of the conflict in Ukraine, the export of grape wine from Armenia to Russia increased by 30% compared to the same period in 2021. The volume of exports from Armenia to Russia of grape wines is about 1.7 million liters, fruit wines - 4.2 million liters.
The rise of trade with the United States and the EU due to bypassing sanctions against the Russian Federation
The rapid growth of trade flows USA EU with neighbors Russia may be a sign that sanctions can be avoided, the European Bank for Reconstruction and Development believes.
German exports to Russia from May to July 2022 fell 38% compared to the average for the same period in 2017-2019. However, it almost doubled to Armenia and more than tripled to Kyrgyzstan - a trend also seen in trade flows to the Caucasus and Central Asia from the US, Britain and EU countries.
Internet trade
IT industry
R&D
2020: R&D costs - $59M
Communication
Main article: Communication (Armenian market)
Tourism
2023: Tourist flow from Russia to Armenia increased by 33% over the year
At the end of 2023, the tourist flow from Russia to Armenia increased by 33%. Russian tourists have made more than 1 million trips to this country. Such figures are given in the materials of the Ministry of Economic Development of Russia, with which TAdviser got acquainted in early October 2024.
As the Association of Tour Operators notes, in 2023 Armenia entered the top five countries - leaders in the number of air passengers departing from Russia (for any purpose). According to tour operators, in the structure of Russians' trips to Armenia, about 60% fall on diaspora trips, over 20% - on transit. Another 10-13% is provided by independent travelers, including the business tourism segment. Clients of travel companies (organized tourism) account for 5-7%.
In 2023, the average tour check Armenia in was for different tour operators from 75 thousand to 120 thousand rubles for two. Coral Travel The average cost of living hotels Armenia in 2023 was in the region of 4000 rubles per room per day. Among various tour operators, the demand for travel of Russians Armenia in 2023 rose from 20% to 70%. At the same time PEGAS Touristik , two-time growth was recorded. In part, such a significant increase in demand is due to the low base in previous years.
In turn, Armenian tourists in 2023 made Russia 366 thousand trips. This is 34.6% more than the previous year. At the same time, the head of the Tourism Committee Armenia Sisian Poghosyan said that according to the results of 2023, a total of 2.3 million tourists (from all states) visited the country. This is about 20% more compared to 2019 and 39% more than in 2022. According to her, 50% of tourists arrived from Russia. Georgia (11%) and (6 Iran %) finished second and third, respectively. Next come with 3 United States of AmericaUSA % of tourists. [4]
2019: How much Armenia is dependent on tourism:% of the industry in GDP
2018
Salaries
2023: Minimum wage - $138
2017: Average monthly salary
Unemployment
2020: Unemployment rate - 22.3%
Alcohol market
Minimum age to purchase alcoholic beverages
Agriculture
2019: Low use of pesticides in agriculture
Consumption
Meat
2023: Beef is the most consumed type of meat
History
2022: 1,200 Russian companies open offices in Armenia amid conflict in Ukraine
From the end of February to the end of June 2022, 1,200 companies from Russia were relocated to Armenia against the background of Russia's special operation in Ukraine and the subsequent sanctions of the United States and its satellite countries.
See also
Notes
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