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Armenia Economy 2014
http://www.theodora.com/wfbcurrent/armenia/armenia_economy.html
SOURCE: 2014 CIA WORLD FACTBOOK AND OTHER SOURCES


















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Page last updated on December 17, 2013

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, led the downturn. The economy began to recover in 2010 with 2.1% growth, and picked up to 4.6% growth in 2011, before slowing to 3.8% in 2012. 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. Since August 2011, Armenia experienced a sharp 15 percent currency depreciation and an increase in the unemployment rate. 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 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 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. Natural gas is primarily imported from Russia but construction of a pipeline to deliver natural gas from Iran to Armenia was completed in December 2008, and gas deliveries expanded after the April 2010 completion of the Yerevan Thermal Power Plant. 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 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. Amendments to tax legislation, including the introduction of the first ever "luxury tax" in 2011, aim to increase the ratio of budget revenues to GDP, which still remains at low levels. 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.

GDP (purchasing power parity):
$19.44 billion (2012 est.)
country comparison to the world: 133

$18.14 billion (2011 est.)
$17.32 billion (2010 est.)
note: data are in 2012 US dollars
[see also: GDP country ranks ]

GDP (official exchange rate):
$9.776 billion (2012 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
7.2% (2012 est.)
country comparison to the world: 27

4.7% (2011 est.)
2.2% (2010 est.)
[see also: GDP - real growth rate country ranks ]

GDP - per capita:
$5,900 (2012 est.)
country comparison to the world: 149

$5,500 (2011 est.)
$5,300 (2010 est.)
note: data are in 2012 US dollars
[see also: GDP - per capita country ranks ]

Gross national saving:
13.2% of GDP (2012 est.)
country comparison to the world: 113

16.1% of GDP (2011 est.)
18% of GDP (2010 est.)

GDP - composition, by end use:
household consumption: 88.5%
government consumption: 13%
investment in fixed capital: 23.7%
investment in inventories: 0.1%
exports of goods and services: 24.6%
imports of goods and services: -49.8%

(2012 est.)
[see also: country ranks ]

GDP - composition, by sector of origin:
agriculture: 20.5%
industry: 37%
services: 42.5% (2012 est.)

Agriculture - products:
fruit (especially grapes), vegetables; livestock

Industries:
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, mining

Industrial production growth rate:
5.8% (2012 est.)
country comparison to the world: 45
[see also: Industrial production growth rate country ranks ]

Labor force:
1.386 million (2012 est.)
country comparison to the world: 132
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 44.2%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 16.8%
services: 39% (2008 est.)

Unemployment rate:
17.3% (2012 est.)
country comparison to the world: 153

18.4% (2011 est.)
[see also: Unemployment rate country ranks ]

Population below poverty line:
35.8% (2010 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 3.7%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 25.4% (2008)

Distribution of family income - Gini index:
30.9 (2008)
country comparison to the world: 110

44.4 (1996)
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $2.338 billion
[see also: Budget revenues country ranks ]
expenditures: $2.492 billion (2012 est.)

Taxes and other revenues:
23.9% of GDP (2012 est.)
country comparison to the world: 135
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-1.6% of GDP (2012 est.)
country comparison to the world: 73
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
41.4% of GDP (2012 est.)
country comparison to the world: 86

42.2% of GDP (2011 est.)
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
2.6% (2012 est.)
country comparison to the world: 74

7.6% (2011 est.)
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
8% (11 January 2012)
country comparison to the world: 35

7.25% (2 December 2008)
note: this is the Refinancing Rate, the key monetary policy instrument of the Armenian National Bank
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
17.23% (31 December 2012 est.)
country comparison to the world: 26

17.76% (31 December 2011 est.)
note: average lending rate on loans up to one year
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$1.352 billion (31 December 2012 est.)
country comparison to the world: 141

$1.332 billion (31 December 2011 est.)
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$3.555 billion (31 December 2012 est.)
country comparison to the world: 138

$4.261 billion (31 December 2011 est.)
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$4.355 billion (31 December 2012 est.)
country comparison to the world: 117

$3.548 billion (31 December 2011 est.)
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$43.52 million (31 December 2011)
country comparison to the world: 117

$27.99 million (31 December 2010)
$140.5 million (31 December 2009)
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$-1.052 billion (2012 est.)
country comparison to the world: 118

$-1.136 billion (2011 est.)
[see also: Current account balance country ranks ]

Exports:
$1.588 billion (2012 est.)
country comparison to the world: 144

$1.456 billion (2011 est.)
[see also: Exports country ranks ]

Exports - commodities:
pig iron, unwrought copper, nonferrous metals, diamonds, mineral products, foodstuffs, energy

Exports - partners:
Russia 19.6%, Germany 10.7%, Bulgaria 9.1%, Belgium 8.9%, Iran 6.9%, US 6.1%, Canada 6%, Georgia 5.7%, Netherlands 5.6%, Switzerland 5% (2012)

Imports:
$3.656 billion (2012 est.)
country comparison to the world: 139

$3.561 billion (2011 est.)
[see also: Imports country ranks ]

Imports - commodities:
natural gas, petroleum, tobacco products, foodstuffs, diamonds

Imports - partners:
Russia 24.8%, China 9.4%, Germany 6.2%, Iran 5.2%, Ukraine 5.1%, Turkey 5% (2012)

Reserves of foreign exchange and gold:
$1.799 billion (31 December 2012 est.)
country comparison to the world: 124

$1.932 billion (31 December 2011 est.)
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$7.633 billion (31 December 2012 est.)
country comparison to the world: 106

$7.383 billion (31 December 2011 est.)
[see also: Debt - external country ranks ]

Exchange rates:
drams (AMD) per US dollar -

401.76 (2012 est.)
372.5 (2011 est.)
373.66 (2010 est.)
363.28 (2009)
303.93 (2008)


NOTE: The information regarding Armenia on this page is re-published from the 2014 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Armenia Economy 2014 information contained here. All suggestions for corrections of any errors about Armenia Economy 2014 should be addressed to the CIA.



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