Economy - overview:
After several years of double-digit economic growth, Armenia faced a severe economic recession with GDP declining more than 14% in 2009, despite large loans from multilateral institutions. Sharp declines in the construction sector and workers' remittances, particularly from Russia, were the main reasons for the downturn. The economy began to recover in 2010 with nearly 5% growth. 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 managed to reduce poverty, slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Since the breakup of the Soviet Union in 1991, Armenia had made progress in implementing some economic reforms, including privatization, price reforms, and prudent fiscal policies, but geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made Armenia particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. The conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh contributed to a severe economic decline in the early 1990s and Armenia's borders with Turkey remain closed until 2010, when Turkey and Armenia signed an accord to reestablish diplomatic relations. 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. The electricity distribution system was privatized in 2002 and bought by Russia's RAO-UES in 2005. Construction of a pipeline to deliver natural gas from Iran to Armenia was completed in December 2008, and gas deliveries are slated to expand due to the April 2010 completion of the Yerevan Thermal Power Plant. Armenia has some mineral deposits (copper, gold, bauxite). Pig iron, unwrought copper, and other nonferrous metals are Armenia's highest valued exports. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective and the current economic downturn has led to a sharp drop in tax revenue and forced the government to accept large loan packages from Russia, the IMF, and other international financial institutions. Armenia will need to pursue additional economic reforms 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.
GDP (purchasing power parity): GDP (official exchange rate): GDP - real growth rate: GDP - per capita (PPP): GDP - composition by sector: Labor force: Labor force - by occupation: Unemployment rate: Population below poverty line: Household income or consumption by percentage share: Distribution of family income - Gini index: Investment (gross fixed): Budget: Inflation rate (consumer prices): Central bank discount rate: Commercial bank prime lending rate: Stock of narrow money: Stock of broad money: Stock of domestic credit: Market value of publicly traded shares: Agriculture - products: Industries: Industrial production growth rate: Electricity - production: Electricity - consumption: Electricity - exports: Electricity - imports: Oil - production: Oil - consumption: Oil - exports: Oil - imports: Oil - proved reserves: Natural gas - production: Natural gas - consumption: Natural gas - exports: Natural gas - imports: Natural gas - proved reserves: Current account balance: Exports: Exports - commodities: Exports - partners: Imports: Imports - commodities: Imports - partners: Reserves of foreign exchange and gold: Debt - external: Exchange rates:
NOTE: The information regarding Armenia on this page is re-published from the 2011 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Armenia Economy 2011 information contained here. All suggestions for corrections of any errors about Armenia Economy 2011 should be addressed to the CIA.
$17.27 billion (2010 est.)
country comparison to the world: 133
note:
data are in 2010 US dollars
[see also: GDP (purchasing power parity) country ranks ]
$8.83 billion (2009 est.)
[see also: GDP (official exchange rate) country ranks ]
4.7% (2010 est.)
country comparison to the world: 63
[see also: GDP - real growth rate country ranks ]
$5,800 (2010 est.)
country comparison to the world: 139
note:
data are in 2010 US dollars
[see also: GDP - per capita country ranks ]
agriculture: 22%
[see also: GDP - composition by sector - agriculture country ranks ]
industry:
46.6%
[see also: GDP - composition by sector - industry country ranks ]
services:
31.4% (2009 est.)
[see also: GDP - composition by sector - services country ranks ]
1.481 million (2007 est.)
country comparison to the world: 131
[see also: Labor force country ranks ]
agriculture: 46.2%
[see also: Labor force - by occupation - agriculture country ranks ]
industry:
15.6%
[see also: Labor force - by occupation - industry country ranks ]
services:
38.2% (2006 est.)
[see also: Labor force - by occupation - services country ranks ]
7.1% (2007 est.)
country comparison to the world: 73
[see also: Unemployment rate country ranks ]
26.5% (2006 est.)
[see also: Population below poverty line country ranks ]
lowest 10%: 1.6%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%:
41.3% (2004)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]
37 (2006)
country comparison to the world: 77
[see also: Distribution of family income - Gini index country ranks ]
33.3% of GDP (2009 est.)
country comparison to the world: 11
[see also: Investment (gross fixed) country ranks ]
revenues: $2.063 billion
[see also: Budget - revenues country ranks ]
expenditures:
$2.607 billion (2009 est.)
[see also: Budget - expenditures country ranks ]
6.9% (2010 est.)
country comparison to the world: 176
[see also: Inflation rate (consumer prices) country ranks ]
NA% (31 December 2009)
country comparison to the world: 56
note:
this is the Refinancing Rate, the key monetary policy instrument of the Armenian National Bank
[see also: Central bank discount rate country ranks ]
18.76% (31 December 2009 est.)
country comparison to the world: 32
[see also: Commercial bank prime lending rate country ranks ]
$1.131 billion (31 December 2010 est)
[see also: Stock of narrow money country ranks ]
$3.507 billion (31 December 2010 est.)
[see also: Stock of broad money country ranks ]
$1.821 billion (31 December 2010 est.)
country comparison to the world: 128
[see also: Stock of domestic credit country ranks ]
$140.5 million (31 December 2009)
country comparison to the world: 111
[see also: Market value of publicly traded shares country ranks ]
fruit (especially grapes), vegetables; livestock
diamond-processing, metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry manufacturing, software development, food processing, brandy
8% (2009 est.)
country comparison to the world: 26
[see also: Industrial production growth rate country ranks ]
5.584 billion kWh (2007 est.)
country comparison to the world: 109
[see also: Electricity - production country ranks ]
4.776 billion kWh (2007 est.)
country comparison to the world: 110
[see also: Electricity - consumption country ranks ]
451.3 million kWh; note - exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh region in Azerbaijan (2007 est.)
[see also: Electricity - exports country ranks ]
418.7 million kWh; note - imports an unknown quantity from Iran (2007 est.)
[see also: Electricity - imports country ranks ]
0 bbl/day (2009 est.)
country comparison to the world: 208
[see also: Oil - production country ranks ]
49,000 bbl/day (2009 est.)
country comparison to the world: 98
[see also: Oil - consumption country ranks ]
0 bbl/day (2007 est.)
country comparison to the world: 140
[see also: Oil - exports country ranks ]
45,200 bbl/day (2007 est.)
country comparison to the world: 92
[see also: Oil - imports country ranks ]
0 bbl (1 January 2010 est.)
country comparison to the world: 204
[see also: Oil - proved reserves country ranks ]
0 cu m (2008 est.)
country comparison to the world: 95
[see also: Natural gas - production country ranks ]
1.93 billion cu m (2008 est.)
country comparison to the world: 81
[see also: Natural gas - consumption country ranks ]
0 cu m (2008 est.)
country comparison to the world: 202
[see also: Natural gas - exports country ranks ]
1.93 billion cu m (2008 est.)
country comparison to the world: 47
[see also: Natural gas - imports country ranks ]
0 cu m (1 January 2010 est.)
country comparison to the world: 204
[see also: Natural gas - proved reserves country ranks ]
-$1.138 billion (2010 est.)
country comparison to the world: 142
[see also: Current account balance country ranks ]
$846 million (2010 est.)
country comparison to the world: 159
[see also: Exports country ranks ]
pig iron, unwrought copper, nonferrous metals, diamonds, mineral products, foodstuffs, energy
Germany 16.47%, Russia 15.45%, US 9.64%, Bulgaria 8.6%, Georgia 7.57%, Netherlands 7.48%, Belgium 6.71%, Canada 4.91% (2009)
$2.988 billion (2010 est.)
country comparison to the world: 141
[see also: Imports country ranks ]
natural gas, petroleum, tobacco products, foodstuffs, diamonds
Russia 24.02%, China 8.72%, Ukraine 6.15%, Turkey 5.39%, Germany 5.36%, Iran 4.07% (2009)
$2.247 billion (31 December 2010 est.)
country comparison to the world: 94
[see also: Reserves of foreign exchange and gold country ranks ]
$5.227 billion (30 June 2010)
country comparison to the world: 103
[see also: Debt - external country ranks ]
drams (AMD) per US dollar - 374.29 (2010), 363.28 (2009), 303.93 (2008), 344.06 (2007), 414.69 (2006)
This page was last modified 09-Feb-11