Economy of Armenia

The economy of Armenia grew by 12.6% in 2022, according to the country's Statistical Committee and the International Monetary Fund. Total output amounted to 8.497 trillion Armenian drams, or $19.5 billion. At the same time, Armenia's foreign trade turnover significantly accelerated in growth from 17.7% in 2021 to 68.6% in 2022. GDP contracted sharply in 2020 by 7.2%, mainly due to the COVID-19 recession and the war against Azerbaijan. In contrast it grew by 7.6 per cent in 2019, the largest recorded growth since 2007, while between 2012 and 2018 GDP grew 40.7%, and key banking indicators like assets and credit exposures almost doubled. While part of the Soviet Union, the economy of Armenia was based largely on industry—chemicals, electronic products, machinery, processed food, synthetic rubber and textiles; it was highly dependent on outside resources. Armenian mines produce copper, zinc, gold and lead. The vast majority of energy is produced with imported fuel from Russia, including gas and nuclear fuel for Armenia's Metsamor nuclear power plant. The main domestic energy source is hydroelectric. Small amounts of coal, gas and petroleum have not yet been developed. The severe trade imbalance has been offset somewhat by international aid, remittances from Armenians abroad, and foreign direct investment. Armenia is a member of the Eurasian Economic Union and ties with Russia remain close, especially in the energy sector. 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. Armenia began borrowing soon after declaring independence. In 2000, Armenian governmental debt reached its greatest level relative to GDP (49.

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Related concepts (3)

Armenia

Armenia, officially the Republic of Armenia, is a landlocked country in the Armenian Highlands of West Asia, with geopolitical ties to Europe. It is a part of the Caucasus region and is bordered by Turkey to the west, Georgia to the north and Azerbaijan to the east, and Iran and the Azerbaijani exclave of Nakhchivan to the south. Yerevan is the capital, largest city and financial center. Armenia is a unitary, multi-party, democratic nation-state with an ancient cultural heritage.

Economy of Armenia

Azerbaijan

Azerbaijan (UKˌæzərbaɪˈdʒɑːn,_-ˈdʒæn, USˌɑːzərbaɪˈdʒɑːn,_ˌæz-; Azərbaycan, ɑːzæɾbɑjˈdʒɑn), officially the Republic of Azerbaijan, is a transcontinental country located at the boundary of Eastern Europe and West Asia. It is a part of the South Caucasus region and is bounded by the Caspian Sea to the east, Russia (Republic of Dagestan) to the north, Georgia to the northwest, Armenia and Turkey to the west, and Iran to the south. Baku is the capital and largest city.