Armenia Economy - 2022

Economic 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 agro industrial 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 joined the World Trade Organization in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been largely ineffective. Armenia will need to pursue additional economic reforms and strengthen the rule of law in order to raise its economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from Turkey and Azerbaijan.

Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to volatility in the global commodity markets and the economic challenges in Russia. Armenia is particularly dependent on Russian commercial and governmental support, as most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector. Remittances from expatriates working in Russia are equivalent to about 12-14% of GDP. Armenia joined the Russia-led Eurasian Economic Union in January 2015, but has remained interested in pursuing closer ties with the EU as well, signing a Comprehensive and Enhanced Partnership Agreement with the EU in November 2017. Armenia’s rising government debt is leading Yerevan to tighten its fiscal policies – the amount is approaching the debt to GDP ratio threshold set by national legislation.

Real GDP (purchasing power parity)

$37.31 billion (2020 est.)

$40.38 billion (2019 est.)

$37.53 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

7.5% (2017 est.)

0.3% (2016 est.)

3.3% (2015 est.)

Real GDP per capita

$12,600 (2020 est.)

$13,700 (2019 est.)

$12,700 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$13.694 billion (2019 est.)

Inflation rate (consumer prices)

1.4% (2019 est.)

2.5% (2018 est.)

0.9% (2017 est.)

Credit ratings

Fitch rating: B+ (2020)

Moody's rating: Ba3 (2019)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 16.7% (2017 est.)

industry: 28.2% (2017 est.)

services: 54.8% (2017 est.)

GDP - composition, by end use

household consumption: 76.7% (2017 est.)

government consumption: 14.2% (2017 est.)

investment in fixed capital: 17.3% (2017 est.)

investment in inventories: 4.1% (2017 est.)

exports of goods and services: 38.1% (2017 est.)

imports of goods and services: -50.4% (2017 est.)

Agricultural products

milk, potatoes, grapes, vegetables, tomatoes, watermelons, wheat, apples, cabbages, barley

Industries

brandy, mining, 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

Industrial production growth rate

5.4% (2017 est.)

Labor force

1.507 million (2017 est.)

Labor force - by occupation

agriculture: 36.3%

industry: 17%

services: 46.7% (2013 est.)

Unemployment rate

18.9% (2017 est.)

18.8% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 24%

male: 25.4%

female: 22.1% (2020 est.)

Population below poverty line

26.4% (2019 est.)

Gini Index coefficient - distribution of family income

34.4 (2018 est.)

31.5 (2013 est.)

Household income or consumption by percentage share

lowest 10%: 3.5%

highest 10%: 25.7% (2014)

Budget

revenues: 2.644 billion (2017 est.)

expenditures: 3.192 billion (2017 est.)

Budget surplus (+) or deficit (-)

-4.8% (of GDP) (2017 est.)

Public debt

53.5% of GDP (2017 est.)

51.9% of GDP (2016 est.)

Taxes and other revenues

22.9% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$328 million (2017 est.)

-$238 million (2016 est.)

Exports

$3.82 billion (2020 est.)

$5.64 billion (2019 est.)

$4.91 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Russia 22%, Switzerland 20%, China 7%, Bulgaria 6%, Iraq 5%, Serbia 5%, Netherlands 5%, Germany 5% (2019)

Exports - commodities

copper ore, gold, tobacco, liquors, iron alloys (2019)

Imports

$5 billion (2020 est.) note: data are in current year dollars

$7.47 billion (2019 est.) note: data are in current year dollars

$6.61 billion (2018 est.) note: data are in current year dollars

Imports - partners

Russia 29%, China 10%, Georgia 8%, Iran 6%, Turkey 5% (2019)

Imports - commodities

natural gas, cars, refined petroleum, broadcasting equipment, diamonds (2019)

Reserves of foreign exchange and gold

$2.314 billion (31 December 2017 est.)

$2.204 billion (31 December 2016 est.)

Debt - external

$11.637 billion (2019 est.)

$10.785 billion (2018 est.)

Exchange rates

drams (AMD) per US dollar -

487.9 (2017 est.)

480.49 (2016 est.)

480.49 (2015 est.)

477.92 (2014 est.)

415.92 (2013 est.)