Armenia’s export diversification decreases -WB says

YEREVAN, May 1. /ARKA/. The bulk of Armenian exports is unprocessed raw materials, as a consequence the country is more dependent on price fluctuations in the commodities market, World Bank Senior Economist Lea Hakim said.

“In terms of exports, we see that the bulk of exports are in basic commodities, mainly gold, copper ore,” she said while presenting the WB report “Going Beyond Borders: unleashing the potential for a sustainable future” on Tuesday.

She pointed out that given the growth of ore exports, the complexity and diversity of Armenia's exports is decreasing, which means less added value.

At the same time, she noted that if Russia had a big share in Armenia's economy before, and after 2022 this role has increased, therefore the level of diversification has become less.  

At the same time, the report points out another problem - logistics. Armenia has no access to the sea, which together with closed borders creates limitations.

“Even where there are roads, in 45% of cases they are in poor condition,” the economist said, noting that problems arise not only in getting to Armenia, but also when traveling between regions of the country, and that rural areas are in poor condition both in terms of the money spent on them and the services provided.

According to the National Statistical Committee, Armenia’s foreign trade in the first quarter of 2024 amounted to $9.2 billion, which is 2.1 times more than in January-March 2023. Exports increased 2.7 times to $4.4 billion, while imports amounted to $4.7 billion, with a 75.8% growth compared to the first quarter of 2023. -0-