The picture in the export sector is worrying

"LUYS" Foundation addresses the socio-economic developments of the RA economy in 2025. in January-August. The picture in the export sector remains worrying. After softening for several months, the rate of export decline worsened again in August, reaching 40.8%. The drop in exports in January-August was 48.8%. These large declines are mainly due to a decrease in re-export volumes, and when adjusted for most of this, the export growth is only 2.5% (according to January-July data), which indicates that the export potential has decreased significantly. The rate of growth of loans to households continues to significantly exceed the growth of their incomes. The increase in the total volume of loans is mainly caused by the growth of consumer and mortgage loans, respectively 31.1% and 26.3%. It is noteworthy that the incomes of the population (salaries, remittances, real GDP, etc.) do not grow in a corresponding amount. In this regard, progressive growth with a significant difference in loans compared to income may cause risks in the medium term from the point of view of financial stability.