The EDB: tendencies for Armenia’s integrated development within the EAEU strengthen in 2018

06 August 2019

Moscow, 6 August 2019. Amid active domestic political developments in Armenia, the integration agenda remains a priority. This finding is presented in the report titled Main Tendencies in Armenia’s Integration Development in 2018 prepared by the Centre for Integration Studies at the EDB’s Directorate for Research.

In 2018, the favourable trends in Armenia’s mutual trade with the EAEU member states, compared to that with other countries, constrained an increase in the nation’s total foreign trade deficit. The growth rate of Armenia’s exports to the EAEU was the highest among the Union’s countries.

The significant increase in exports to the EAEU was predominantly associated with strengthened corporate cooperation (primarily with Russia), which widened Armenian exporters’ access to Eurasian markets. Against the backdrop of insignificant improvements in the terms of trade compared to other EAEU countries, the country’s weak elasticity in terms of developments in its external price competitiveness, and a recession in agriculture (the key sector exporting to the EAEU), the surge in exports and light industry outputs had a considerable positive effect on Armenia’s overall mutual trade indicators.

The integration-related financial channels have also strengthened. Money remittances continue to stimulate the consumer and investment components of domestic demand, as well as Armenia’s overall balance of payments, by compensating foreign trade deficit. After a rather lengthy period of Russian FDI outflows from Armenia, in 2018 the net flow of inward foreign investment from Russia became positive and, with reductions in the net FDI flows from other countries, Russia’s share in FDI increased significantly. Financial support in the form of borrowings from the EAEU countries has also strengthened. In addition, Armenian companies increased the use of national currencies in mutual trade.

The full version of the report Main Tendencies in Armenia’s Integration Development in 2018 is available for free on the EDB’s website:


Additional Information:

The Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, the Kyrgyz Republic, Russia and Tajikistan. 

The EDB Media Centre:

Alexander Savelyev +7 (985) 765 23 59 (Moscow)

Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)

Sergey Gorbachev +7 (916) 727 22 00 (Moscow)

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