Economy minister addresses reasons behind export-import trade deficit

Armenia’s Minister of Economy Gevorg Papoyan has addressed the reasons behind an 8% decline in exports from Armenia and a 9.5% increase in imports.

Papoyan commented on the issue in response to a question from opposition Strong Armenia faction leader Narek Karapetyan during parliamentary debates.

Karapetyan noted that, over the past year under the current Armenian government, exports had declined by 8%, while imports had increased by 9.5%. He stressed that Armenia had not experienced such an increase in the trade deficit in the past 36 years.

In response, Papoyan cited the UAE as an example, noting that overall trade turnover can decline even as exports of Armenian-made goods increase.

According to the minister, exports of Armenian-origin goods to the UAE had increased by 48%, while overall trade turnover had declined due to changes in transactions involving Russian gold.

“Exports of Armenian-origin goods to the UAE, as I have already noted, have increased by 48%, but overall trade turnover has declined significantly,” he said.

According to Papoyan, transactions involving Russian gold had previously inflated the overall trade turnover figure, while the absence of such transactions had reduced it.

“When Russian gold comes to the Republic of Armenia and then leaves, trade turnover swells. This year, that is not happening, so the figure is lower. You present this as a tragedy. I am saying that it has had no negative effect on our economy,” Papoyan said.

He emphasized that he considers the increase in exports of goods produced in Armenia itself to be a positive outcome for the economy.