How the Suspension of Sotk Mine Operations Has Affected the Armenian Economy

The suspension of operations at the Sotk gold mine has negatively impacted the growth indicators of the Armenian economy in 2023. This was stated by the Minister of Finance of Armenia, Vahe Hovhannisyan, during a joint meeting of the permanent committees of the National Assembly, where he summarized the main economic indicators for 2023.

Earlier, in May, we reported that the operations of the open pit mine at Sotk had been halted due to periodic shelling. In October, Gegharkunik region governor Karen Sargsyan announced that the mine was partially continuing its operations, referring to the closed section.

According to Minister Hovhannisyan, the industry has negatively impacted the economic activity indicator, with the closure of the Sotk mine having a particularly significant effect. Meanwhile, the primary economic growth has been ensured by the increase in the services sector.

As a result, in the first nine months of 2023, economic activity amounted to 9.7 percent, although the high growth recorded in August slowed down in September, including in the services sector.

Exports from Armenia increased by 48 percent in 2023, primarily due to the tripling of re-export volumes to Russia, while the export of Armenian-produced goods decreased by 0.8 percent.