Trade Statistics Of Armenia - Armenia"S Trade Dynamics: Key Insights On Exports And Imports"
What Are The Key Factors Influencing Armenia"S Trade?"
Armenia"s mineral resources drive export growth in B2B marketplace. "
Armenia is known for its mineral resources, particularly copper and molybdenum. These metals constitute a significant portion of Armenia's exports. Other mined resources include gold, silver, and zinc. Armenia exports agricultural products such as fruits (apricots, grapes, pomegranates), vegetables, nuts (especially hazelnuts), dairy products, and processed food items. The textile industry in Armenia produces and exports clothing, knitwear, and accessories. Armenia has a growing jewelry sector, with exports of gold and silver jewelry, gemstones, and precious metals.
One of Armenia's main obstacles to expanding trade with the rest of the world is its landlocked access to the sea. This has increased Armenia's need for its neighbors, while its two main neighbors, Turkey and the Republic of Azerbaijan do not have good political relations with Iran's northern neighbor. Although the two countries have trade relations with Armenia, this relationship has always been affected by political conflicts. These issues have created a unique business opportunity for other neighbors and countries close to Armenia. Especially for Eurasian Union countries that have special privileges to trade with each other.
Armenia heavily relies on energy imports, including natural gas and petroleum products, to meet its energy needs. Armenia imports machinery, equipment, and vehicles for industrial purposes, infrastructure development, and transportation. Armenia imports chemicals for various purposes, including manufacturing, agriculture, and pharmaceuticals. Despite being an agricultural country, Armenia imports certain food products to supplement domestic production and meet consumer demand.
The combination of these factors has made Russia one of Armenia's most important trading partners. Although Iran has a significant share in trade with this country, it is significantly different from Russia. It also exports a significant amount of goods to Iran. In the following, we will get acquainted with the main partners of Armenia in the discussion of export and import. Russia is the main trading partner with 26.93%. This is while the two countries do not have a common border. Although they are geographically very close to each other, but having cultural and historical commonalities alongside the Eurasian Union's trade advantages seems to have helped warm the Armenian-Russian trade.
Russia is Armenia's largest trading partner, with significant imports and exports between the two countries. Armenia benefits from preferential trade agreements within the framework of the Eurasian Economic Union (EAEU), of which both countries are members. Armenia has trade relations with EU member states. The EU is an important export destination for Armenian products. Armenia shares a border with Iran, facilitating trade between the two countries. Iran is a significant trading partner for Armenia, particularly in terms of energy imports and exports of agricultural and manufactured goods. The United States is an important trading partner for Armenia, especially regarding technology, machinery, and textiles.
The latest data from the World Trade Organization (WTO) in 2018, which shows the largest volume of Armenian exports to different countries. In addition to Russia, Armenia's most important trading partners in terms of exports are Switzerland (14.16%), Bulgaria (9.10%), Iraq (6.32%), the Netherlands (5.55%), China (4.50%) and Iran (3.95%), respectively. Some of these countries, including Russia and China, also play a significant role in exports to Armenia, which indicates their trade relations with each other. Armenia engages in international trade to import goods it lacks domestically and export its products to generate revenue. Armenia has traditionally experienced a trade deficit, meaning its imports exceed its exports. This trade imbalance necessitates the reliance on remittances, foreign aid, and investment to bridge the gap.
Armenia"s economy, with a GDP of approximately $13. 6 billion, is classified as lower-middle-income. The country is working to enhance its trade relations and diversify its export base, which currently relies heavily on mining, agriculture, and textiles. While Armenia has made progress in the World Bank"s Ease of Doing Business Index, it still ranks lower in the Global Competitiveness Index. Key sectors include chemicals, machinery, and IT, where Armenia has gained recognition for its skilled workforce and growing startup ecosystem. However, regional challenges such as the conflict with Azerbaijan and closed borders with Turkey limit trade opportunities. Despite these hurdles, Armenia has improved its investment climate to attract foreign direct investment (FDI) through regulatory reforms and incentives. Membership in the Eurasian Economic Union (EAEU) offers access to larger markets and preferential trade agreements.
Additionally, Armenia"s Comprehensive Partnership Agreement with the EU aims to strengthen economic ties further. "
Armenia"s trade landscape is characterized by its rich mineral resources, particularly copper and molybdenum, which form a significant part of its exports. The country also exports agricultural products like fruits, vegetables, nuts, and dairy items, alongside textiles and jewelry. However, Armenia"s landlocked position poses challenges for expanding trade, particularly with neighboring countries like Turkey and Azerbaijan due to political tensions. This situation has created opportunities for trade with other nations, especially those in the Eurasian Union that enjoy preferential trading terms. Russia stands out as Armenia"s largest trading partner, accounting for nearly 27% of its trade volume. The relationship is bolstered by cultural ties and the benefits of the Eurasian Economic Union. Other notable partners include Switzerland, Bulgaria, Iraq, the Netherlands, China, and Iran. While Armenia imports a variety of goods including energy resources and machinery to support its economy, it often faces a trade deficit where imports surpass exports.
This imbalance necessitates reliance on remittances and foreign investments to sustain economic growth. "
Armenia"s economy is classified as an emerging market, with a GDP of approximately $13. 6 billion in 2020. The GDP per capita stands at around $4,500, reflecting lower income levels compared to developed nations. Key sectors include mining, manufacturing, food processing, and construction, with mining being particularly significant due to the country"s rich mineral resources. Remittances from Armenians abroad contribute substantially to national income. Foreign direct investment from countries like Russia and the U. S. supports sectors such as IT and tourism.
Despite challenges post-independence, Armenia has seen growth in various industries, including tourism which attracts visitors from neighboring Iran. The agricultural sector employs about 44% of the workforce but has seen a decline in its GDP contribution over time. The services sector is also vital, encompassing IT, financial services, and telecommunications. Armenia"s economic stability is supported by controlled inflation since 1998 and a free market system aided by international organizations. Taxation on income and corporate profits serves as a key revenue source for the government. "
Armenia"s primary trading partner is Russia, which supplies a significant portion of its imports, including natural gas, petroleum products, and machinery. As a member of the Eurasian Economic Union (EAEU), Armenia benefits from preferential trade agreements with Russia. China has emerged as an increasingly vital partner, providing machinery, electronics, textiles, and raw materials that support Armenia"s manufacturing and retail sectors. Germany is another key player in Armenia"s import market, known for high-quality machinery and industrial equipment. Iran also plays a crucial role by supplying energy resources and various consumer goods. The European Union (EU) has strengthened its ties with Armenia through the Comprehensive and Enhanced Partnership Agreement (CEPA), focusing on mutual interests such as economic development and reform support. Despite political tensions with Turkey, some trade continues in construction materials and textiles. The United States contributes to Armenia"s imports through technology and pharmaceuticals. Overall, Armenia maintains diverse trade relations with multiple countries to meet its import needs.
Armenia, a landlocked country in the South Caucasus, is bordered by Turkey, Georgia, Azerbaijan, and Iran. Its geography significantly impacts its political and economic relations. The ongoing territorial conflict with Azerbaijan over Nagorno-Karabakh has created a complex relationship, exacerbated by a closed border. Armenia maintains generally positive ties with Georgia, collaborating on various projects despite occasional tensions. Relations with Iran are historically friendly, providing Armenia with vital trade routes. The country is divided into three regions: Greater Armenia, Lesser Armenia, and New Armenia. Politically, Armenia operates as a democratic republic with a National Assembly comprising 131 seats. The political landscape has evolved over time, reflecting changes in governance and public sentiment.
Historical conflicts and geopolitical interests shape Armenia"s interactions with its neighbors, particularly with Turkey due to the contentious issue of the Armenian Genocide. Diplomatic relations remain strained as borders have been closed since 1993. "
Armenia"s trade landscape is characterized by strong ties with Russia, China, and the EU, particularly Germany. As a member of the Eurasian Economic Union (EAEU), Armenia benefits from preferential trade agreements with Russia, importing natural gas, machinery, and consumer goods. China has emerged as a vital partner, supplying machinery and textiles that support Armenia"s manufacturing and retail sectors. The EU also plays a significant role in Armenia"s imports, with countries like Germany and Italy providing essential goods. Additionally, Armenia maintains trade relations with nations such as Ukraine, South Korea, and India. The country"s economic growth is bolstered by its focus on industrial development and agricultural products. Despite political tensions with Turkey, some trade continues in construction materials and textiles. The United States has become increasingly important for technology and pharmaceuticals.
Overall, Armenia"s strategic partnerships enhance its economic prospects while fostering regional trade dynamics. "
