The trade-to-GDP ratio is an

indicator Indicator may refer to: Biology * Environmental indicator of environmental health (pressures, conditions and responses) * Ecological indicator of ecosystem health (ecological processes) * Health indicator, which is used to describe the health ...

of the relative importance of

international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (see: World economy) In most countries, such trade represents a significant ...

in the

economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

of a country. It is calculated by dividing the aggregate value of imports and

export An export in international trade is a good produced in one country that is sold into another country or a service provided in one country for a national or resident of another country. The seller of such goods or the service provider is an ...

s over a period by the

gross domestic product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

for the same period. Although called a

ratio In mathematics, a ratio shows how many times one number contains another. For example, if there are eight oranges and six lemons in a bowl of fruit, then the ratio of oranges to lemons is eight to six (that is, 8:6, which is equivalent to the ...

, it is usually expressed as a percentage. It is used as a measure of the openness of a country to international trade, and so may also be called the trade openness ratio. It may be seen as an indicator of the degree of globalisation of an economy. Other factors aside, the trade-to-GDP ratio tends to be low in countries with large economies and large populations such as Japan and the United States, and to have a higher value in small economies. Singapore has the highest trade-to-GDP ratio of any country; between 2008 and 2011 it averaged about 400%. For such economies as Armenia trade to GDP ratio is not as high as for Singapore, but at the same time it is not as low as for the developed countries such as USA and Japan. Taking into account the last available data for Armenia, trade openness is approximately 78% for 2021. For trade-to-GDP ratio, the provided data for Armenia is from 1990 to 2021. The average value for Armenia during that period was 77.92% with a minimum of 54.54% in 2008 and a maximum of 112.43% in 1994. For comparison, the world average in 2021 based on 129 countries is 90.86%. See the global rankings for that indicator or use the country comparator to compare trends over time. Worldwide trade-to-GDP ratio rose from just over 20% in 1995 to about 30% in 2014.

References

Macroeconomic indicators {{economics-stub

See also

References