ay from the large
agroindustrial complexes of the Soviet era. Nuclear power plants
built at Metsamor in the 1970s were closed following the 1988 Spitak
Earthquake, though they sustained no damage. One of the two reactors
was re-opened in 1995, but the Armenian government is under
international pressure to close it due to concerns that the Soviet
era design lacks important safeguards. Metsamor provides 40 percent
of the country's electricity - hydropower accounts for about
one-fourth. Economic ties with Russia remain close, especially in
the energy sector. The electricity distribution system was
privatized in 2002 and bought by Russia's RAO-UES in 2005.
Construction of a pipeline to deliver natural gas from Iran to
Armenia is halfway completed and is scheduled to be commissioned by
January 2009. Armenia has some mineral deposits (copper, gold,
bauxite). Pig iron, unwrought copper, and other nonferrous metals
are Armenia's highest valued exports. Armenia's severe trade
imbalance has been offset somewhat by international aid, remittances
from Armenians working abroad, and foreign direct investment.
Armenia joined the WTO in January 2003. The government made some
improvements in tax and customs administration in recent years, but
anti-corruption measures will be more difficult to implement.
Despite strong economic growth, Armenia's unemployment rate remains
high. Armenia will need to pursue additional economic reforms in
order to improve its economic competitiveness and to build on recent
improvements in poverty and unemployment, especially given its
economic isolation from two of its nearest neighbors, Turkey and
Azerbaijan.

GDP (purchasing power parity):

$17.17 billion (2007 est.)

GDP (official exchange rate):

$7.974 billion (2007 est.)

GDP - real growth rate:

13.7% (2007 est.)

GDP - per capita (PPP):

$5,800 (2007 est.)

GDP - composition by sector:

agriculture: 17.2%
industry: 36.4%
services: 46.4% (2007 est.)

Labor force:

1.2 million (2007 est.)

Labor force - by occupation:

agriculture: 46.2%
industry: 15.6%
services: 38.2% (2006 est.)

Unemployment rate:

7.1% (2007 est.)

Population below poverty line:

26.5% (2006 est.)

Household income or consumption by percentage share:

lowest 10%: 1.6%
highest 10%: 41.3% (2004)

Distribution of family income - Gini index:

37 (2006)

Investment (gross fixed):

33.6% of GDP (2007 est.)

Budget: