Economy - 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. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic program that has resulted in positive growth rates in 1995-2001. 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. Armenia's severe trade imbalance has been offset somewhat by international aid, domestic restructuring of the economy, and foreign direct investment.

GDP purchasing power parity - $11.2 billion (2001 est.)

GDP - real growth rate 9.6% (2001 est.)

GDP - per capita purchasing power parity - $3,350 (2001 est.)

GDP - composition by sector
agriculture: 29%
industry: 32%
services: 39% (2000 est.)

Population below poverty line 55% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 2.3%
highest 10%: 35.2% (1996)

Distribution of family income - Gini index 44.4 (1996)

Inflation rate (consumer prices) 3.1% (2000 est.)

Labor force 1.4 million (2001)

Labor force - by occupation agriculture 44%, services 14%, industry 42% (2000 est.)

Unemployment rate 20%
note: official rate is 10.9% for 2000 (2001 est.)

Budget
revenues: $358 million
expenditures: $458 million, including capital expenditures of $NA (2001 est.)

Industries metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, gem cutting, jewelry manufacturing, software development, food processing, brandy

Industrial production growth rate 3.8% (2001)

Electricity - production 5.69 billion kWh (2000)

Electricity - production by source
fossil fuel: 36.34%
other: 0% (2000)
nuclear: 32.34%
hydro: 31.32%

Electricity - consumption 4.89 billion kWh (2000)

Electricity - exports 704 million kWh
note: exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh region in Azerbaijan (2000)

Electricity - imports 300 million kWh
note: imports an unknown quantity from Iran (2000)

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

Exports $338.5 million (f.o.b., 2001 est.)

Exports - commodities diamonds, scrap metal, machinery and equipment, brandy, copper ore

Exports - partners Belgium 23%, Russia 15%, US 13%, Iran 10% (2000)

Imports $868.6 million (f.o.b., 2001 est.)

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

Imports - partners Russia 15%, US 12%, Belgium 10%, Iran 9% (2000)

Debt - external $839 million (June 2001)

Economic aid - recipient $245.5 million (1995)

Currency dram (AMD)

Currency code AMD

Exchange rates drams per US dollar - 564.08 (January 2002), 555.08 (2001), 539.53 (2000), 535.06 (1999), 504.92 (1998), 490.85 (1997)

Fiscal year calendar year

NOTE: The information regarding Armenia on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Armenia Economy 2002 information contained here. All suggestions for corrections of any errors about Armenia Economy 2002 should be addressed to the CIA.