Trade Turnover Negative

[hytga]

TRADE TURNOVER NEGATIVE

http://www.azg.am/start.pl?lang=EN&num=2004031602

 

Foreign trade turnover of Armenia formed 1,9 billion dollars last year. This figure is larger than that of the 2002 by 30 percent, or by approximately 450 million USD.

 

The home products? export in 2003 formed 678 million USD. The import was fixed at 1,2 billion dollars. In comparison with 2002, export hiked by 173 million, and the import by 282 million dollars. The increase of export being a positive stimulus, the growth of import again broke the balance of Armenian trade turnover, the "minus" forming 591 million dollars. That is, this is the sum that "leaves" Armenia for foreign land, to foster foreign economies.

 

The largest "supporter" of Armenia?s export is the precious and semi-precious stones and metals sector, the revenues from where make more than half of the overall export figure, an estimated 349 million dollars. In contrast to 2002, the raw jewelry earned 90 more million bucks for home export. The other sectors that add considerably to the export figures of Armenia are base metals (with double hike in export figures compared to 2002), and finished food products (with 18 million dollars? hike). Regrettably, the other sectors of home production lag way behind, all of them together forming roughly 20 million USD in export figure.

 

Armenia has positive trade balance only with Germany, Netherlands and Israel (i.e. exports more to than imports from these states) out of overall 30 trade partners. The major market for Armenia remains the European Union with 453 million dollar turnover. Second comes Russia with 302 million, and then Israel- 265 million dollars. Armenia?s fourth largest trade partner is Belgium with 253 million, and fifth is the USA with 157 million dollars turnover.

 

Anyway, the trade balance is negative for Armenia, which still has 141 million USD gap if the private money transfers to Armenia are calculated as a plus to general fiscal turnover. This fact once again signals the urgency of replacing import of certain goods by home production, as well as shows that some branches of Armenia?s economy machine are making errors.

 

By Ara Martirosian

[hytga]

armenia needs to strategically restructure it'ts economy. since it's small, the development software sector and technology should be given a priority (at least in the long run).

[Azat]

armenia needs to strategically restructure it'ts economy. since it's small, the development software sector and technology should be given a priority (at least in the long run).

Yes, but to build a software industry it takes a LONG time. it took India over 15 years to get to where they are now...

 

But agree with you in regards that this should be one of the directions that they move in.

[hytga]

if they haven't yet started, they better hurry up, and diaspora armenians should invest in those sectors, and not spoonfeed the public. what the diaspora armenians are doing, they're sponsoring lazyness. by building a couple of roads, the're not going to go anywhere. the diaspora in the whole needs to be more active, because armenia cannot maintan a favorable trade balance, simply because there isn't much stuff to export. And even if there is, they should not rely too heavily on material export because, whatever there is(molybden, copper etc) will be exhousted in a short time if they try to maintain a favorable balance by boosting the exports in those sectors Edited March 16, 2004 by hytga