| Economy of Armenia | ||
|---|---|---|
| Currency | 1 Dram = 100 louma | |
| Fiscal year | Calendar year | |
| Trade organisations | CIS, WTO | |
| Statistics [1] | ||
| GDP ranking | 126th (2006) [2] | |
| GDPReal All GDP figures are "real" (after inflation) not nominal (before inflation) | $16. The dram (Դրամ ISO 4217 code AMD) is the Monetary unit of Armenia. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 94 billion Purchasing Power Parity basis- GDPReal = $6. 6 when caluculated through a direct exchange rate (2006) | |
| GDP growth | 13. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 4% (2006) | |
| GDP per capita | $5,700 (2006) | |
| GDP by sector | agriculture (17. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 7%), industry (42%), services (40. 3%) (2006) | |
| Inflation | 2. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time 9% (2006) | |
| Pop below poverty line | 34. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. The poverty threshold, or poverty line, is the minimum level of Income deemed necessary to achieve an adequate Standard of living in a given country 6% (2004) | |
| Labour force | 1. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " 2 million (2006) | |
| Labour force by occupation | services (30%), industry (25%), agriculture (45%) (2002) | |
| Unemployment | 7. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. Unemployment occurs when a person is available to work and currently seeking work but the person is without work. 4% (2006) | |
| Main 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 | |
| Trading Partners [3] | ||
| Exports | $1. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. An electric motor uses Electrical energy to produce Mechanical energy. A shoe is an item of Footwear. Shoes may vary from a simple Flip-flop to a complex Boot. Silk is a natural Protein Fiber, some forms of which can be woven into Textiles The best-known type of silk is obtained from cocoons The chemical industry comprises the companies that produce industrial chemicals This article is about the semi-truck For the North American use of the word see Pickup truck. A musical instrument is a device constructed or modified for the purpose of making Music. Microelectronics is a subfield of Electronics. Microelectronics as the name suggestsis related to the study and manufacture or Microfabrication, of electronic Food is any substance usually composed primarily of Carbohydrates Fats water and/or Proteins that can be eaten or drunk by an Brandy (from brandywine, derived from Dutch brandewijn — “burnt wine” is a spirit produced by distilling Wine 056 billion (2006) | |
| Main partners | Germany 15. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 6%, Netherlands 13. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 7%, Belgium 12. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those 8%, Russia 12. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending 2%, Israel 11. For a topic outline on this subject see List of basic Israel topics. 5%, US 11. The United States of America —commonly referred to as the 2%, Georgia 4. Georgia ( საქართველო, Sakartvelo) is a Transcontinental country in the Caucasus region situated at the dividing line between 8% (2005) | |
| Imports | $1. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. 684 billion (2005) | |
| Main Partners | Russia 13. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending 5%, Belgium 8%, Germany 7. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 8%, Ukraine 7%, Turkmenistan 6. Ukraine (Україна Ukrayina, /ukrɑˈjinɑ/ is a country in Eastern Europe. Turkmenistan ( Türkmenistan; also known as Turkmenia) is a Turkic country in Central Asia. 3%, US 6. The United States of America —commonly referred to as the 2%, Israel 5. For a topic outline on this subject see List of basic Israel topics. 8%, Iran 4. For a topic outline on this subject see List of basic Iran topics. 8%, Romania 4. Romania ( dated: Rumania, Roumania 2% (2005) | |
| Public finances [4] | ||
| External debt | $1. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. 16 billion (2006) | |
| Revenues | $1. Year 2006 ( MMVI) was a Common year starting on Sunday of the Gregorian calendar. 3 billion (2007) | |
| Expenditures | $1. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. 6 billion (2007) | |
| Economic aid | $254 million (recipient) (2004) | |
Armenia is the second most densely populated of the former Soviet republics. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Armenia (Հայաստան transliterated: Hayastan,) officially the Republic of Armenia (Հայաստանի Հանրապետություն Hayastani The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 It is between the Black Sea and the Caspian Sea, bordered on the north and east by Georgia and Azerbaijan and on the south and west by Iran and Turkey. The Black Sea is an inland Sea bounded by southeastern Europe, the Caucasus and the Anatolian peninsula ( Turkey The Caspian Sea is the largest enclosed body of water on Earth by area variously classed as the world's largest lake or a full-fledged Sea. Georgia ( საქართველო, Sakartvelo) is a Transcontinental country in the Caucasus region situated at the dividing line between Azerbaijan ( English; Azərbaycan officially the Republic of Azerbaijan (Azərbaycan Respublikası is the largest and most populous country in the South For a topic outline on this subject see List of basic Iran topics. Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches
Until independence, Armenia's economy was based largely on industry--chemicals, electronic products, machinery, processed food, synthetic rubber, and textiles--and highly dependent on outside resources. Agriculture accounted for only 20% of net material product and 10% of employment before the breakup of the Soviet Union in 1991. Agriculture refers to the production of goods through the growing of plants and fungi and the raising of domesticated Animals The study of agriculture Armenian mines produce copper, zinc, gold, and lead. Copper (ˈkɒpɚ is a Chemical element with the symbol Cu (cuprum and Atomic number 29 Zinc (ˈzɪŋk from Zink is a Metallic Chemical element with the symbol Zn and Atomic number 30 Gold (ˈɡoʊld is a Chemical element with the symbol Au (from its Latin name aurum) and Atomic number 79 Characteristics Lead has a dull luster and is a dense, Ductile, very soft highly The vast majority of energy is produced with imported fuel, including gas and nuclear fuel (for its one nuclear power plant) from Russia; the main domestic energy source is hydroelectric. Small amounts of coal, gas, and petroleum have not yet been developed.
Like other former States, Armenia's economy suffers from the legacy of a centrally planned economy and the breakdown of former Soviet trading patterns. Soviet investment in and support of Armenian industry has virtually disappeared, so that few major enterprises are still able to function. In addition, the effects of the 1988 earthquake, which killed more than 25,000 people and made 500,000 homeless, are still being felt. Although a cease-fire has held since 1994, the conflict with Azerbaijan over Nagorno-Karabakh has not been resolved. The consequent blockade along both the Azerbaijani and Turkish borders has devastated the economy, because of Armenia's dependence on outside supplies of energy and most raw materials. Land routes through Azerbaijan and Turkey are closed; routes through Georgia and Iran are inadequate or unreliable. In 1992-93, GDP fell nearly 60% from its 1989 level. The national currency, the dram, suffered hyperinflation for the first few years after its introduction in 1993.
Nevertheless, the Government of Armenia, helped by the cease-fire that has been in effect in Nagorno-Karabakh since 1994, has been able to carry out wideranging economic reforms which paid off in dramatically lower inflation and steady growth. Armenia has registered strong economic growth since 1995, building on the turnaround that began the previous year, and inflation has been negligible for the past several years. New sectors, such as precious stone processing and jewelry making, information and communication technology, and even tourism are beginning to supplement more traditional sectors such as agriculture in the economy.
This steady economic progress has earned Armenia increasing support from international institutions. The IMF, World Bank, EBRD, as well as other IFIs and foreign countries are extending considerable grants and loans. Total loans extended to Armenia since 1993 exceed $800 million. These loans are targeted at reducing the budget deficit, stabilizing the local currency; developing private businesses; energy; the agriculture, food processing, transportation, and health and education sectors; and ongoing rehabilitation work in the earthquake zone.
Continued progress will depend on the ability of the government to strengthen its macroeconomic management, including increasing revenue collection, improve the investment climate, and accelerate the privatization process. A liberal foreign investment law was approved in June 1994, and a Law on Privatization was adopted in 1997, as well as a program on state property privatization. The government has made major strides toward joining the World Trade Organization. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic liberalization program that resulted in positive growth rates in 1995-2005. Armenia joined the WTO in January 2003. Armenia also has managed to slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Armenia's unemployment rate, however, remains high, despite strong economic growth. The chronic energy shortages Armenia suffered in the early and mid-1990s have been offset by the energy supplied by one of its nuclear power plants at Metsamor. For the village near Echmiadzin see Metsamor Echmiadzin; for the river see Akhurian River; for the archaeological site see Metsamor site. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor, which is under international pressure to close. The electricity distribution system was privatized in 2002. Privatization is the incidence or process of transferring ownership of business from the Public sector (government to the Private sector (business Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving Economic ties with Russia remain close, especially in the energy sector. Russia (Россия Rossiya) or the Russian Federation ( Rossiyskaya Federatsiya) is a transcontinental Country extending The government made some improvements in tax and customs administration in 2005, but anti-corruption measures will be more difficult to implement. Investment in the construction and industrial sectors is expected to continue in 2006 and will help to ensure annual average real GDP growth of about 13. In the fields of Architecture and Civil engineering, construction is a process that consists of the Building or assembling of Infrastructure For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" 9%.
Contents |
Overview
Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (gold, bauxite) are small. A mineral is a naturally occurring substance formed through geological processes that has a characteristic chemical composition a highly ordered atomic structure and specific Gold (ˈɡoʊld is a Chemical element with the symbol Au (from its Latin name aurum) and Atomic number 79 Bauxite is the most important Aluminium Ore. It consists largely of the minerals Gibbsite Al(OH3 Boehmite γ-AlO(OH and The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh (which was part of Soviet Azerbaijan) and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. An economic system is a System that involves the production, distribution and consumption of goods and services between By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic program that has resulted in positive growth rates in 1995-99. Armenia also managed to slash inflation and to privatize most small- and medium-sized enterprises. The chronic energy shortages Armenia suffered in recent years have been largely offset by the energy supplied by one of its nuclear power plants at Metsamor. Continued Russian financial difficulties have hurt the trade sector especially, but have been offset by international aid, domestic restructuring, and foreign direct investment.
History of the modern Armenian economy
Armenia emerged from the umbra of the former Soviet Union in 1991 and migrated from a centrally planned economy (Communist system) to a market economy (capitalist system). Armenia (Հայաստան transliterated: Hayastan,) officially the Republic of Armenia (Հայաստանի Հանրապետություն Hayastani For other uses of the word "umbra" see Umbra (disambiguation. The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 Year 1991 ( MCMXCI) was a Common year starting on Tuesday (link will display full calendar of the Gregorian Calendar. A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based A market economy is a realized Social system based on the Division of labour in which the prices of Goods and Services are determined in a Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where Both the nation and the economy are nascent. A nation is a Human Cultural and Social Community. In as much as most members never meet each other yet feel a common bond it may be considered An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area Birth is the act or process of bearing or bringing forth Offspring. Regional conflict retards economic growth. Economic growth is the increase in the amount of the goods and services produced by an economy over time In addition, the border with Turkey is closed, making access to sea ports difficult and transportation logistics challenging to a country largely dependent upon imports. Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches Transport or transportation is the movement of people and goods from one place to another Logistics is the management of the flow of Goods, Information and other resources including Energy and people between the point of origin and the point In 2003, Armenia became a member of the WTO (World Trade Organization). The nation is making substantial progress in privatizing ownership of what used to be State Owned industries under the former Soviet system. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" Despite marked progress, Armenia still suffers from a large trade imballance and is still largely dependent upon foreign aid and remittances from Armenian nationals working abroad, and members of the diaspora donating aid through NGOs (non-governmental organizations) such as the church. The term Diaspora (in Greek, διασπορά &ndash " a scattering or sowing of seeds " refers any population sharing common ethnic There are some foreign capital inflows, but no robust foreign investment. Despite progress since the Soviet era, the unemployment rate still hovers near 30% and there remains a huge gulf between actual and potential Gross Domestic Product.
GDP
The Gross Domestic Product of Armenia is estimated in 2006 to be 6. 6 billion US dollars per calendar year and the GDP per capita (purchasing power parity) is estimated at $5400 US. The dollar (often represented by the Dollar sign: "$" is the name of the official Currency in several countries dependencies and other The growth rate is high at 13. 4%, but the relatively low base must be considered. Low inflation is maintained around 2. 6% annually. Source: CIA Factbook
Environmental Issues
Armenia is trying to address its environmental problems. The World Factbook ( ISSN; also known as the CIA World Factbook) is an annual publication of the Central Intelligence Agency of the It has established a Ministry of Environment and has introduced a pollution fee system by which taxes are levied on air and water emissions and solid waste disposal, with the resulting revenues used for environmental protection activities. Armenia is interested in cooperating with other members of the Commonwealth of Independent States (a group of 12 former Soviet republics) and with members of the international community on environmental issues. The Armenian Government is working toward closing the Armenian Nuclear Power Plant as soon as alternate energy sources can be identified.
Other Statistics
Investment (gross fixed): 19. 8% of GDP (2004)
Household income or consumption by percentage share:
lowest 10%: 2. "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " 3%
highest 10%: 46. 2% (1999)
Distribution of family income - Gini index: 44. Year 1999 ( MCMXCIX) was a Common year starting on Friday (link will display full 1999 Gregorian calendar) 4 (1996)
Agriculture - products: fruit (especially grapes and apricots), vegetables, livestock, Wine, Brandy
Industrial production growth rate: 15% (2002 est. Year 1996 ( MCMXCVI) was a Leap year starting on Monday (link will display full 1996 Gregorian calendar) The term fruit has different meanings dependent on context and the term is not synonymous in Food preparation and Biology. For the Tokyo University supercomputer see Gravity Pipe. GRAPE, or GRA phics P rogramming E nvironment is The Apricot ( Prunus armeniaca, "Armenian plum" in Latin syn The term " vegetable " generally means the edible parts of Plants The definition of the word is traditional rather than Scientific, however Livestock is the term used to refer (singularly or plurally to a Domesticated Animal intentionally reared in an agricultural setting to produce such as Food Wine is an Alcoholic beverage made from the fermentation of Grape juice Brandy (from brandywine, derived from Dutch brandewijn — “burnt wine” is a spirit produced by distilling Wine )
Electricity - production: 6,492 GWh (2002)
Electricity - consumption: 5,797 GWh (2002)
Electricity - exports: 704 GWh; note - exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh (2002)
Electricity - imports: 463 GWh; note - imports an unknown quantity from Iran (2002)
Oil - production: 0 barrel/day (2001 est. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. See also 2002 (disambiguation Year 2002 ( MMII) was a Common year starting on Tuesday of the Gregorian calendar. )
Oil - consumption: 5,700 barrel/day (2001 est. )
Oil - exports: NA (2001)
Oil - imports: NA (2001)
Natural gas - production: 0 m³ (2001 est. )
Natural gas - consumption: 1. 4 billion m³ (2001 est. )
Natural gas - exports: 0 m³ (2001 est. )
Natural gas - imports: 1. 4 billion m³ (2001 est. )
Current account balance: $-240. 4 million (2004)
Exports - commodities: cut diamonds, mineral products, foodstuffs, energy
Imports - commodities: natural gas, petroleum, tobacco products, foodstuffs, uncut diamonds
Reserves of foreign exchange & gold: $754. In Mineralogy, diamond is the allotrope of carbon where the carbon atoms are arranged in A mineral is a naturally occurring substance formed through geological processes that has a characteristic chemical composition a highly ordered atomic structure and specific In Physics and other Sciences energy (from the Greek grc ἐνέργεια - Energeia, "activity operation" from grc ἐνεργός Natural gas is a Gaseous Fossil fuel consisting primarily of Methane but including significant quantities of Ethane, Propane, Petroleum ( L petroleum, from Greek πετρέλαιον, lit Tobacco is an Agricultural product recognized as an addictive drug processed from the fresh Leaves of plants in the genus Nicotiana. For the commodity see Food. Foodstuffs NZ Ltd is a New Zealand grocery distributor incorporated as a Retailers' cooperative In Mineralogy, diamond is the allotrope of carbon where the carbon atoms are arranged in 9 million (2005)
Debt - external: $1. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. 819 billion (2005)
Currency: dram (AMD)
Currency code: AMD
Exchange rates: Armenian dram per US dollar - 310. Year 2005 ( MMV) was a Common year starting on Saturday (link displays full calendar of the Gregorian calendar. The dram (Դրամ ISO 4217 code AMD) is the Monetary unit of Armenia. The dram (Դրամ ISO 4217 code AMD) is the Monetary unit of Armenia. 00 (2008), 457. 69 (2005), 533. 45 (2004), 578. 76 (2003), 573. 35 (2002), 555. 08 (2001), 539. 53 (2000)
References
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