Investments continued to decline in 2016
National Statistical Service of Armenia issued statistics of investments for 2016. As April 1 is the silence day of election campaign, we won’t reflect to promises of political powers and their programs. Instead, we’ll introduce what snapshot we had in 2016, how much investments we had, from which countries and in which fields.
It should be noted that figures are rather disappointing.
Thus, in 2016 net flow of Armenia’s foreign investments in real sector of Armenia’s economy comprised AMD 81.6 billion (around USD 170 million), from which: net flow of direct investments comprised AMD 62.7 billion (around USD 130 million). It should be stated that in the reporting period net flows regarding foreign investments are differences of receipts and payments.
In 2015 figures were as follows: total of volume of net flows of foreign investments—AMD 118.4 billion (around USD 248 million), net flows of foreign direct investments—AMD 69.4 billion (around USD 145 million). In 2016 compared with 2015 total investments have reduced by AMD 36.8 billion or 31.1%, and foreign net flows—by AMD 6.7 billion or 9.7%.
However, this isn’t all. After studying a bit the “curly” statistics of investments, interesting conclusions may be drawn. Net flow, as already mentioned regarding foreign investments is the difference of receipts and payments. In other words, difference of inflow and outflow. The most interesting, perhaps, is observation per countries. Statistics proves that Luxemburg, Cyprus and United Kingdom are leaders regarding inflow.
Thus, net flow of investments in real sector of Armenia’s economy from Luxemburg comprised AMD 48.4 billion, from which: direct investments comprised AMD 10.8 billion.
We had investment flow from Cyprus amounting AMD 44.3 billion, from which AMD 34.6 billion in form of direct investments.
Investment flow from UK comprised AMD 33.7 billion, mostly direct investments (to compare it should be stated that net flow of investments in 2015 was negative—AMD 35.7 billion).
Cyprus capital was mostly directed to the fields of accommodation organization and telecommunication, British capital to mining and capital of Luxemburg, almost entirely to the field of electricity, gas, vapor and high-quality air supply (you may guess which companies are meant).
These were the so-called champions of foreign investments. Which are “anti-champions”, countries, in case of which investment flow is negative (i.e. capital flow has been recorded).
List of those countries is headed by Russia. In 2016 net flow of total investments in 2016 had negative growth of -AMD 52 billion (around USD 108 million), from which: direct investments –AMD 26.3 billion. In other words, this means rather big capital has flown to Armenia. It should be added that capital to Russia has mostly escaped to the fields of mining and supply of electricity, gas, vapor and high-quality air. Russia is followed by Lebanon. Total of investments comprises –AMD 17.3 billion, that of direct investments –AMD 15.8 billion. We also have a negative index with Netherlands: -AMD 16.7 billion regarding investments, and direct investments—AMD 1.4 billion.
In the end, it should be added that despite reduction in the history of newly independent Armenia’s all years Russia remains the biggest investor. 36.35% of gross flows of foreign investments is shared by this country from 1988 to late 2016, including 46.53% of direct investments. The second biggest investor is Germany (10.31%) and France is the third (8.04%).
By Babken Tunyan
