Flag of Armenia

Armenia Economy Profile 2018

Home > Factbook > Countries > Armenia

Economy - overviewUnder 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 deteriorations 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 7-8% of GDP. Armenia joined the Russia-led Eurasian Economic Union in January 2015, but has expressed interest in expanding its economic ties with the European Union as well, and in March 2017 an EU-Armenia Comprehensive and Enhanced Partnership Agreement was initiated. Armenia’s rising government debt is leading Yerevan to tighten its fiscal policies – the debt almost reached the debt to GDP threshold set by national legislation as of March 2017.
GDP (purchasing power parity)$27.21 billion (2017 est.)
$26.28 billion (2016 est.)
$26.23 billion (2015 est.)
note: data are in 2017 dollars
GDP (official exchange rate)$11.04 billion (2016 est.)
GDP - real growth rate3.5% (2017 est.)
0.2% (2016 est.)
3.3% (2015 est.)
GDP - per capita (PPP)$9,100 (2017 est.)
$8,800 (2016 est.)
$8,800 (2015 est.)
note: data are in 2017 dollars
Gross national saving17.4% of GDP (2017 est.)
17% of GDP (2016 est.)
18.4% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 76.6%
government consumption: 13.1%
investment in fixed capital: 17.9%
investment in inventories: 3%
exports of goods and services: 37.3%
imports of goods and services: -47.9% (2017 est.)
GDP - composition by sectoragriculture: 17.7%
industry: 27.8%
services: 54.5% (2017 est.)
Population below poverty line32% (2013 est.)
Labor force1.507 million (2017 est.)
Labor force - by occupationagriculture: 36.3%
industry: 17%
services: 46.7% (2013 est.)
Unemployment rate18.9% (2017 est.)
18.8% (2016 est.)
Unemployment, youth ages 15-24total: 32.5%
male: 28.6%
female: 37.2% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 3.5%
highest 10%: 25.7% (2014)
Distribution of family income - Gini index31.5 (2014)
31.5 (2013 est.)
Budgetrevenues: $2.536 billion
expenditures: $2.91 billion (2017 est.)
Taxes and other revenues23% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-3.4% of GDP (2017 est.)
Public debt56.7% of GDP (2017 est.)
56.5% of GDP (2016 est.)
Inflation rate (consumer prices)1.9% (2017 est.)
-1.4% (2016 est.)
Central bank discount rate6.5% (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 rate16% (31 December 2017 est.)
17.36% (31 December 2016 est.)
note: average lending rate on loans up to one year
Stock of narrow money$1.514 billion (31 December 2017 est.)
$1.355 billion (31 December 2016 est.)
Stock of broad money$2.563 billion (31 December 2017 est.)
$2.219 billion (31 December 2016 est.)
Stock of domestic credit$6.616 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 - productsfruit (especially grapes and apricots), vegetables; livestock
Industriesbrandy, 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 rate5% (2017 est.)
Current Account Balance-$398 million (2017 est.)
-$238 million (2016 est.)
Exports$2.233 billion (2017 est.)
$1.891 billion (2016 est.)
Exports - commoditiesunwrought copper, pig iron, nonferrous metals, gold, diamonds, mineral products, foodstuffs, brandy, cigarettes, energy
Exports - partnersRussia 21%, Bulgaria 8.7%, Georgia 8.1%, Canada 7.9%, Germany 7.9%, Iraq 7.8%, China 5.7%, Iran 4.2%, Switzerland 4.2% (2016)
Imports$3.361 billion (2017 est.)
$2.835 billion (2016 est.)
Imports - commoditiesnatural gas, petroleum, tobacco products, foodstuffs, diamonds, pharmaceuticals, cars
Imports - partnersRussia 30.7%, China 11%, Iran 5.1%, Turkey 5%, Germany 5% (2016)
Reserves of foreign exchange and gold$2.242 billion (31 December 2017 est.)
$2.204 billion (31 December 2016 est.)
Debt - external$9.17 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 (2014 est.)
Stock of direct foreign investment - abroad$228 million (2015 est.)
$215 million (2014 est.)
Exchange ratesdrams (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 yearcalendar year

Source: CIA World Factbook
This page was last updated on January 20, 2018

Economy Comparison