Macroeconomy

Macroeconomy

 

Armenia’s foreign trade deficit in 10 months of 2018 amounted to $2.014 billion
/Dec 11/ARKA/

YEREVAN – Armenia’s foreign trade deficit in the first 10 months of 2018 amounted to $2.014 billion, having surged by 36% from the same time span in 2017, the Eurasian Development Bank (EDB) said.
It said the growth reflects, in particular, the increased cost of imported energy fuels. It said also when the growth of oil prices stopped this past autumn, the rise in the cost of imports and, accordingly, the trade deficit slowed down in September and October.
According to the National Statistical Committee, in the first 10 months of 2018, Armenia’s exports amounted to $2.004 billion (an increase of 11.7% year on year), while imports grew by 25.8% to $4.018 billion.


Over 40% of Armenian textile, clothing, leather and shoes production exported to EU
/Dec 12/Panorama/

Business Armenia has published a marketing package presenting investment opportunities, production potential and key indicators of Armenian textile industry.

According to the information provided by Business Armenia research team, the annual exports of Armenian textile and apparel, leather and shoes products grew by 35%-43% over the past two years, with more than 40% exported to EU countries.

In addition to mass consumption products Armenian textile companies are also famous for doing subcontracting for world-known brands.

In order to stimulate the investments, the Armenian government has implemented numerous assistance programs, which make Armenia an inviting platform for European, Iranian and Asian investors. Due to Armenia’s membership to EAEU, the investors can establish textile manufacturing factories here and export to EAEU member countries with overall population of 183 million people with 0% custom duties.

The package also includes a video presenting investment incentives of Armenian textile sector.

Armenian MPs have approved the state budget for 2019 – this is the first state budget to be approved under the “revolutionary” government of Armenia.

Votes for and against
The bill, titled On the State Budget of the Republic of Armenia for 2019, was voted for by 66 MPs. Four voted against, and two abstained.
A few MPs from the former ruling Republican Party of Armenia voted against the bill.
One of them, vice-speaker of the National Assembly Eduard Sharmazanov, explained his approach:
“The RPA faction, which I represent, stated that it would vote in favour, and I accept this opinion. But, given the substantive part of the draft of the main financial document of the country, namely that it is a regressive budget … I will vote against it.”
Former Minister of Justice Arpine Hovhannisyan and former Minister of Education and Science Armen Ashotyan also spoke out against the bill.
Armenia’s defence budget increases by 25%
A look at Armenia’s economy during Pashinyan’s first 100 days

What does the 2019 budget look like?
The Armenian state budget will be 1 trillion 533 billion dram – or about 3.16 billion USD.
Expenditures will be larger, and the deficit will be 151 billion dram (311 million dollars).
Defence spending will be increased by some 20 per cent compared to previous budgets. Furthermore, 530 million dollars will be allocated for military needs. Atom Janjughazyan, Armenia’s acting minister of finance, described how funds will be distributed:
“The lion’s share, 44%, will go towards the social and cultural spheres. About 24 per cent of expenditures are planned to be used to address issues in the fields of defense, security, and public order. Another 12.3 per cent will be used for the real sector of the economy, and 10 per cent for public debt. A further 3.2% will be allocated to community budgets in the form of subsidies. The national debt will stabilize by about 50 per cent, and will be 50.4 per cent this year and the same in 2019.”
Economic growth in Armenia is estimated to be 4.9% and inflation 2.7% in 2019.

Reactions
The general opinion is that the budget is ‘cautious’.
Acting Prime Minister Nikol Pashinyan said that the document was formed within the framework of the logic of the previous authorities:
“I assess this budget as ‘inertial’. This isn’t the budget of our government, but the ghost of the former authorities.”
An expert at the National Centre for Public Policy Studies, Armen Ktoyan, explained:
“I will call this budget honest, because it indicates that we have not yet made the transition from the old system to the new one.”
Economist Atom Margaryan believes that the draft state budget fully reflects the current situation in Armenia:
“This is a conservative, situational budget. However, it involves the solution of significant problems.”
It is addressed to foreign investors and is presented under “Select Armenia” brand with “Make your move, Select Armenia” slogan. You can find the research and the full package on “Select Armenia” platforms.

Armenia’s foreign trade deficit ups by 25% in 11 months to $2.319 billion
/Dec 20 /ARKA/

YEREVAN – Armenia’s foreign trade deficit in the first 11 months of 2018 amounted to $2.319 billion, having upped from $1.859.4 billion, reported for the first 11 months of 2017. The growth, according to the National Statistical Committee, was 24.7%. 
According to the NSC, Armenian exports in the reporting period of time amounted to $2.202.3 billion, which is 9.8% more than in the same period of 2017. Imports amounted to $4.521.3 million, an increase of 24.2%.
In November 2018 Armenian exports decreased by 5%, when compared with November 2017, while imports grew by 12.5%. ($1 – AMD 484.55).

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