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    • Overview:
      Under the old Soviet central planning system, Armenia had developed a more modern industrial sector, supplying machine building equipment, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy resources. Armenia is a large food importer and its mineral deposits (gold, bauxite) are small. The economic decline in recent years (1991-94) has been particularly severe due to the ongoing conflict over the ethnic Armenian-dominated region of Nagorno-Karabakh in Azerbaijan. Azerbaijan and Turkey have blockaded pipeline and railroad traffic to Armenia for its support of the Karabakh Armenians. This has left Armenia with chronic energy shortages because of a lack of capacity and frequent disruptions of natural gas deliveries through unstable Georgia, as well as difficulties in obtaining other types of fuel. In addition, bread is strictly rationed and there are shortages of other goods. In 1994, the economy seemed to bottom out. The government has managed to increase its financial and budgetary discipline, bringing inflation down from around 40% per month in first half 1994 to single digits in second half 1994 and the first quarter of 1995. A full economic recovery cannot be expected until the conflict is settled and the blockade lifted.

    • National product:
      GDP - purchasing power parity - $8.1 billion (1994 estimate as extrapolated from World Bank estimate for 1992)

    • National product real growth rate:
      -2% (1994 est.)

    • National product per capita:
      $2,290 (1994 est.)

    • Inflation rate (consumer prices):
      27% per month average (1994 est.)

    • Unemployment rate:
      6.5% of officially registered unemployed but large numbers of underemployed (1994 est.)

    • Budget:


        $NA, including capital expenditures of $NA

    • Exports:
      $43 million to countries outside the FSU (f.o.b., 1994)

        gold and jewelry, aluminum, transport equipment, electrical equipment

        Iran, Russia, Turkmenistan, Georgia

    • Imports:
      $120 million from countries outside the FSU (c.i.f., 1994)

        grain, other foods, fuel, other energy

        Iran, Russia, Turkmenistan, Georgia, US, EU

    • External debt:

    • Industrial production:
      growth rate 7% (1994 est.); accounts for 41% of GDP

    • Electricity:

        4,620,000 kW

        5.7 billion kWh

        consumption per capita:
        1,620 kWh (1994)

    • Industries:
      traditionally diverse, including (as a percent of output of former USSR) metalcutting machine tools (5.5%), forging-pressing machines (1.9%), electric motors (9%), tires (1.5%), knitted wear (4.4%), hosiery (3.0%), shoes (2.2%), silk fabric (0.8%), washing machines (2.0%), chemicals, trucks, watches, instruments, and microelectronics (1990); currently, much of industry is shut down

    • Agriculture:
      only 17% of land area is arable; employs 31% of labor force as residents increasingly turn to subsistence agriculture; fruits (especially grapes) and vegetable farming, minor livestock sector; vineyards near Yerevan are famous for brandy and other liqueurs

    • Illicit drugs:
      illicit cultivator of cannabis mostly for domestic consumption; used as a transshipment point for illicit drugs to Western Europe

    • Economic aid:

        considerable humanitarian aid, mostly food and energy products, from US and EU; Russia granted 60 billion rubles in technical credits in late 1994 and approved a 110 billion ruble credit almost half of which was to go toward the restart of the Metsamor nuclear power plant

    • Currency:
      1 dram = 100 luma (introduced new currency in November 1993)

    • Exchange rates:
      dram per US$1 - 406 (end December 1994)

    • Fiscal year:
      calendar year

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