Armenia creates illusion of ‘developing economy’
By Rashid Shirinov
The Armenian authorities’ reports about the “incredible growth” of the country’s exports have confused economists and ordinary citizens of this poor country. They were surprised to find out that Armenia exports goods that it did not produce.
“Union of Informed Citizens” NGO has revealed that the export from Armenia to the Eurasian Economic Union (EAEU) made up approximately $392 million in 2016, thereby increasing by half as compared to 2015.
The studies of the commodity structure of exports show that growth in exports has been registered due to products which Armenia itself imports and then re-exports. This was the real reason of high figures in the 2016 exports statistics.
In detail, in January-September 2016, the export of tomatoes from Armenia allegedly increased by more than twenty times, the export of cheese and cottage cheese rose by 450 percent, and the export of caviar and fish increased threefold. Moreover, the export of various vegetables rose by more than 580 percent.
However, in contrast to these “strong” figures, the production growth in food industry of Armenia grew by only 2.6 percent, and the yield even fell in 2016, by nearly 12 percent.
Another surprising moment in the reports of the Armenian National Statistics Agency is $21 million-increase in exports of fabrics, materials, knit, men's and women's clothing. The export growth in some of these areas reached even 960 percent. In contrast to this, the textile production in Armenia in 2016 decreased by 4.8 percent.
Moreover, the export of vaccines increased by 9.6 times, clay – 8.3 times, heating systems, parts of air conditioners, remote control systems and other equipment rose in 3.6 times. However, Armenia does not manufacture such goods.
Surprisingly, the country recorded decrease in traditional exports to Russia of such Armenian products as apricots, pears, fruit juices, beer, some vegetables and others. In particular, the export of apricots, cherries and pears fell by 36 percent, the export of canned vegetables declined by 23.6 percent and the export of various medicines fell by 20 percent.
These data make it obvious that 70 percent increase in exports is not the result of strengthening of Armenia’s trade positions and development of Armenian production. Rather, it is the result of simple re-exports of the imported products.
The Armenian officials just tried to create the illusion of growth, as these indicators do not have anything to do with the Armenian economy. Neither does it have anything to do with the economic development in Armenia.
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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