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Armenia: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Like other CIS (Commonwealth of Independent States) countries, Armenia's economy suffered, at the beginning, from the legacy of a centrally-planned economy and the breakdown of the former Soviet trading models. However, the government was able to carry out wide-ranging economic reforms that have translated into a solid economic growth since 1995. Growth is sustained by domestic demand, which depends strongly in investments and remittances from Armenians working abroad. This economic progress has allowed Armenia to benefit from increasing support from international organizations like the IMF and the World Bank. The total foreign loans and grants accorded to Armenia since 1993 exceed USD 1.1 billion.
However, the country was heavily affected by the international economic crisis. The investments and transfers from the diaspora were radically petered out. The GDP had a drop of 17% in 2009. In order to help Armenia to get out of the crisis, the World Bank, the IMF and Russia have granted a loan totaling almost USD 2 million in the first quarter of 2009.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 8.65 | 9.37e | 10.16 | 10.48 | 10.90 |
| GDP (Constant Prices, Annual % Change) | -14.2 | 2.1 | 4.6 | 4.3 | 4.2 |
| GDP per Capita (USD) | 2,647 | 2,840 | 3,048e | 3,114 | 3,205 |
| General Government Gross Debt (in % of GDP) | 40.2 | 39.2e | 41.5e | 41.4 | 39.3 |
| Inflation Rate (%) | 3.5 | 7.3e | 8.8 | 3.3 | 4.3 |
| Unemployment Rate (% of the Labor Force) | 6.8 | 7.0 | 7.0 | 7.0 | 6.5 |
| Current Account (billions USD) | -1.37 | -1.30e | -1.19e | -1.12 | -1.02 |
| Current Account (in % of GDP) | -15.8 | -13.9e | -11.7e | -9.4 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
Agriculture accounts for 18% of the Armenian GDP and employs 45% of the active population. Armenia mainly produces wheat, potatoes, citrus fruits and wine grapes. Cotton and tobacco are the most important industrial crops.
The industrial sector contributes 33% to the GDP and employs 15% of the population. Armenia has copper, molybdenum, bauxite, zinc, lead, iron, gold, and mercury deposits, which provide the basis for the country’s chemical industry sector and these are the pillars of its exports. In 2009, the growth rate of the industrial production dropped 12%. The mining products constitute 40% of Armenian exports, textiles also play an important role in this sector.
Lastly, the tertiary sector contributes around 50% to the GDP. New sectors such as information technology and communications, jewelry making and even tourism are beginning to complete the traditional sectors (agriculture and textile). Armenia depends on its neighbors (namely Russia) for its energy needs (oil and gas). Hydroelectricity is very well developed in the country, to the point that Armenia is now exporting it. Jewelry making and the size of its diamonds are acknowledged as a stable domain.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 44.2 | 16.8 | 39.0 |
| Value Added (in % of GDP) | 19.8 | 33.5 | 46.7 |
| Value Added (Annual % Change) | 1.7 | -0.1 | 1.8 |
Source: World Bank - Last Available Data.
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| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Armenian Dram (AMD) - Average Annual Exchange Rate For 1 USD | 416.04 | 342.08 | 305.97 | 363.28 | 373.66 |
Source: World Bank - Last Available Data.
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Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
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Armenia has a liberal policy in regards to foreign trade. The share of foreign trade in the country’s GDP is around 70%. Armenia joined the WTO in 2003.
Armenia's main export partners are Germany, Russia, the Netherlands, Bulgaria, the United States, Georgia, Iran and China. The main export commodities are pearls and precious stones, iron and steel, beverages and spirits. It is important to note that Armenia is an enclosed territory, under an economic blockade from its neighbors Azerbaijan and Turkey and depends essentially of Georgia to send and receive its exports and imports from Russia.
The three main import partners of Armenia are Russia, China, Ukraine, Turkey, Germany, Iran and Turkmenistan. Armenia mainly imports non-precious metals, precious and semi-precious stones as well as mineral products (oil and gas), machinery and foodstuffs.
In 2008, and especially in 2009, exports experienced a clear decline due to the economic crisis and the reduction in domestic demand.
| Foreign Trade Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 2,192 | 3,268 | 4,426 | 3,321 | 3,783 |
| Exports of Goods (million USD) | 985 | 1,152 | 1,057 | 710 | 1,011 |
| Imports of Services (million USD) | 600 | 772 | 952 | 839 | 940 |
| Exports of Services (million USD) | 475 | 571 | 636 | 580 | 669 |
| Imports of Goods and Services (Annual % Change) | 3.8 | 13.0 | 7.3 | -21.0 | 0.5 |
| Exports of Goods and Services (Annual % Change) | -7.3 | -3.5 | -13.1 | -32.8 | 1.7 |
| Imports of Goods and Services (in % of GDP) | 39.3 | 39.2 | 40.7 | 37.2 | 36.6 |
| Exports of Goods and Services (in % of GDP) | 23.4 | 19.2 | 15.0 | 12.2 | 12.2 |
| Trade Balance (million USD) | -896 | -1,600 | -2,664 | -2,081 | -2,033 |
| Trade Balance (Including Service) (million USD) | -1,026 | -1,813 | -2,992 | -2,349 | -2,275 |
| Foreign Trade (in % of GDP) | 62.6 | 58.3 | 55.7 | 49.4 | 48.8 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| Main Customers (% of Exports) |
2010 |
| Russia | 15.8% |
| Bulgaria | 15.5% |
| Germany | 13.1% |
| Netherlands | 9.8% |
| United States | 8.1% |
| See More Countries | 37.7% |
| Main Suppliers (% of Imports) |
2010 |
| Russia | 21.9% |
| China | 10.6% |
| Ukraine | 6.1% |
| Iran | 5.8% |
| Turkey | 5.6% |
| See More Countries | 50.1% |
Source: Comtrade, Last Available Data
Source: Comtrade, Last Available Data
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Source: Worldwide Press Freedom Index 2011, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
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Last Updates: February 2012