Armenia Economy

Is Armenia a rich country?

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.

Armenia Economy Data

What is the GDP of Armenia?

GDP - Gross Domestic Product (PPP) $26,560,000,000 (USD)
GDP - official exchange rate $10,750,000,000 (USD)
GDP - real growth rate 3.2%
GDP Per Capita $8,900.00 (USD)
GDP by Sector- agriculture 19.6%
GDP by Sector- Industry 29.1%
GDP by Sector- services 51.3%
GDP - composition, by end use household consumption: 72.5%

government consumption: 13.9%

investment in fixed capital: 20%

investment in inventories: 2.5%

exports of goods and services: 31.6%

imports of goods and services: -40.5%
Population Below Poverty Line 32%
Inflation Rate -0.4%
Labor Force 1,559,000
Labor Force By Occupation- agriculture 39%
Labor Force By Occupation- industry 17%
Labor Force By Occupation- services 44%
Unemployment Rate 18.1%
Fiscal Year calendar year
Annual Budget $2,445,000,000 (USD)
Budget Surplus or Deficit - percent of GDP -4.9%
Public Debt (% of GDP) 53.4%
Taxes and other revenues - percent of GDP 22.7%
Major 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 Growth Rate 4.2%
Agriculture Products fruit (especially grapes), vegetables; livestock
Currency Code 492.7
Child Labor - % of children ages 5-14 4%
Child Labor - # of children ages 5-14 19,596
Child Labor - note note: data represents children ages 7-17
Commercial Bank Prime Lending Rate 17.5%
Commercial Bank Prime Lending Rate - note average lending rate on loans up to one year

Labor Force by Occupation- As reported by Armenia

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