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Armenia Economy Profile 2019

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Economy - 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.

GDP (purchasing power parity)
$28.34 billion (2017 est.)
$26.37 billion (2016 est.)
$26.3 billion (2015 est.)

note: data are in 2017 dollars

GDP (official exchange rate)
$11.54 billion (2017 est.)
GDP - real growth rate
7.5% (2017 est.)
0.3% (2016 est.)
3.3% (2015 est.)
GDP - per capita (PPP)
$9,500 (2017 est.)
$8,800 (2016 est.)
$8,800 (2015 est.)

note: data are in 2017 dollars

Gross national saving
17.8% of GDP (2017 est.)
16.6% of GDP (2016 est.)
18.4% of GDP (2015 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.)
GDP - composition by sector
agriculture: 16.7% (2017 est.)
industry: 28.2% (2017 est.)
services: 54.8% (2017 est.)
Population below poverty line
32% (2013 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.)
Unemployment, youth ages 15-24
total: 36.3%
male: 29.5%
female: 45.7% (2016 est.)
Household income or consumption by percentage share
lowest 10%: 3.5%
highest 10%: 25.7% (2014)
Distribution of family income - Gini index
31.5 (2014)
31.5 (2013 est.)
Budget
revenues: 2.644 billion (2017 est.)
expenditures: 3.192 billion (2017 est.)
Taxes and other revenues
22.9% (of GDP) (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.)
Inflation rate (consumer prices)
0.9% (2017 est.)
-1.4% (2016 est.)
Central bank discount rate
6.5% (14 December 2016)
10.5% (10 February 2015)

note: this is the Refinancing Rate, the key monetary policy instrument of the Armenian National Bank

Commercial bank prime lending rate
14.41% (31 December 2017 est.)
17.36% (31 December 2016 est.)

note: average lending rate on loans up to one year

Stock of narrow money
$1.629 billion (31 December 2017 est.)
$1.355 billion (31 December 2016 est.)
Stock of broad money
$1.629 billion (31 December 2017 est.)
$1.355 billion (31 December 2016 est.)
Stock of domestic credit
$6.712 billion (31 December 2017 est.)
$5.689 billion (31 December 2016 est.)
Market value of publicly traded shares
$132.1 million (31 December 2012 est.)
$139.6 million (31 December 2011 est.)
$144.8 million (31 December 2010 est.)
Agriculture - products
fruit (especially grapes and apricots), vegetables; livestock
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.)
Current Account Balance
-$328 million (2017 est.)
-$238 million (2016 est.)
Exports
$2.361 billion (2017 est.)
$1.891 billion (2016 est.)
Exports - commodities
unwrought copper, pig iron, nonferrous metals, gold, diamonds, mineral products, foodstuffs, brandy, cigarettes, energy
Exports - partners
Russia 24.2%, Bulgaria 12.8%, Switzerland 12%, Georgia 6.9%, Germany 5.9%, China 5.5%, Iraq 5.4%, UAE 4.6%, Netherlands 4.1% (2017)
Imports
$3.771 billion (2017 est.)
$2.835 billion (2016 est.)
Imports - commodities
natural gas, petroleum, tobacco products, foodstuffs, diamonds, pharmaceuticals, cars
Imports - partners
Russia 28%, China 11.5%, Turkey 5.5%, Germany 4.9%, Iran 4.3% (2017)
Reserves of foreign exchange and gold
$2.314 billion (31 December 2017 est.)
$2.204 billion (31 December 2016 est.)
Debt - external
$10.41 billion (31 December 2017 est.)
$8.987 billion (31 December 2016 est.)
Stock of direct foreign investment - at home
$4.169 billion (2015 est.)
$4.087 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad
$228 million (2015 est.)
$215 million (2014 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.)
Fiscal year
calendar year

Source: CIA World Factbook
This page was last updated on December 7, 2019

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