About Armenia and Key Financial Statistics

About Armenia and Key Financial Statistics

Overview of Economy:

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 agroindustrial 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's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector, including electricity and natural gas. Remittances from expatriates working in Russia are equivalent to about 20% of GDP and partly offset the country's severe trade imbalance. Armenia joined Russia in the Eurasian Economic Union upon the bloc's launch in January 2015, even though the ruble's sharp depreciation in December 2014 led to currency instability, inflation, and significant decrease of export from Armenia to Russia. Armenia joined the WTO in January 2003. The government has made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective. Armenia will need to pursue additional economic reforms and to strengthen the rule of law in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.

Gross Domestic Product (In USD):

% Services: 47.7

Composition of Labor Force by Occupation:

% Agriculture: 39

% Industry: 17

% Services: 44

Per Capita Income:

$8,200 (2014 est.)

$7,900 (2013 est.)

$7,600 (2012 est.)

Exports:

$1.665 billion (2014 est.)

$1.636 billion (2013 est.)

Key Export Commodities:

pig iron, unwrought copper, nonferrous metals, gold, diamonds, mineral products, foodstuffs, energy

Export Partners:

Russia 20.3%, China 11.3%, Germany 10.4%, Canada 6.1%, US 5.8%, Bulgaria 5.6%, Iran 5.6%, Georgia 5.5%, Iraq 5.3%, Netherlands 4.9%, Belgium 4.1% (2014)

Imports:

$4.402 billion (2014 est.)

$4.386 billion (2013 est.)

Key Import Commodities:

natural gas, petroleum, tobacco products, foodstuffs, diamonds, pharmaceuticals, cars

Import Partners:

Russia 24.9%, China 9.5%, Germany 6.4%, Turkey 5.3%, Iran 4.7%, Ukraine 4.6%, Italy 4.1% (2014)

Inflation Rate (Consumer Price Index):

3% (2014 est.)

5.8% (2013 est.)

Exchange Rate to USD:

drams (AMD) per US dollar -

415.92 (2014 est.)

415.92 (2013 est.)

401.76 (2012 est.)

372.5 (2011 est.)

373.66 (2010 est.)

Unemployment Rate:

17.6% (2014 est.)

16.2% (2013 est.)

S&P Rating:

Standard & Poor's Ratings:

• • AAA: The best quality borrowers, reliable and stable

  • AA: Quality borrowers, a bit higher risk than AAA

  • A: Economic situation can affect finance

  • BBB: Medium class borrowers, which are satisfactory at the moment

  • BB: More prone to changes in the economy

  • B: Financial situation varies noticeably

  • CCC: An obligor rated currently vulnerable, and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments.

Ref 2012-2014: CIA World Factbook, Wikipedia, PWC, EY, Standard & Poors ratings