Economy Overview
Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Armenia has only two open trade borders - Iran and Georgia - because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993, respectively, as a result of Armenia's ongoing conflict with Azerbaijan over the separatist Nagorno-Karabakh region. Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector, including electricity and natural gas. Remittances from expatriates working in Russia are equivalent to about 20% of GDP and partly offset the country's severe trade imbalance. Armenia joined Russia in the Eurasian Economic Union upon the bloc’s launch in January 2015, even though the ruble’s sharp depreciation in December 2014 led to currency instability, inflation, and significant decrease of export from Armenia to Russia. Armenia joined the WTO in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective. Armenia will need to pursue additional economic reforms and to strengthen the rule of law in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.
Agriculture Products
fruit (especially grapes), vegetables; livestock
Industries
diamond processing, metal-cutting machine tools, forging and pressing machines, electric motors, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry, software, food processing, brandy, mining
Industrial Production Growth Rate
2.7% (2014 est.)
Labor Force
1.489 million (2014 est.)
Labor Force by Occupation
Agriculture: 39%
Industry: 17%
Services: 44% (2011 est.)
Unemployment Rate
16.2% (2013 est.)
Population Below Poverty Line
32% (2013 est.)
Household Income or Consumption by Percentage Share
Lowest 10%: 3.7%
Highest 10%: 24.8% (2012)
Distribution of Family Income Gini Index
31.3 (2011)
Budget
Revenues: $2.825 billion
Expenditures: $3.01 billion (2014 est.)
Public Debt
43.5% of GDP (2013 est.)
Central Bank Discount Rate
8% (11 January 2012)
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$1.424 billion (31 December 2013 est.)
Stock of Broad Money
$2.07 billion (31 December 2013 est.)
Stock of Domestic Credit
$4.39 billion (31 December 2014 est.)
Market Value of Publicly Traded Shares
$144.8 million (31 December 2010 est.)
Reserves of Foreign Exchange and Gold
$2.251 billion (31 December 2013 est.)
Debt External
$8.694 billion (31 December 2013 est.)
Stock of Direct Foreign Investment at Home
$4.817 billion (2013)
Stock of Direct Foreign Investment Abroad
Exchange Rates
373.66 (2010 est.)
