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< 521-611, 520-791, 542-117, 542-132, 524-661,
527-001, 524-840
FAX: [374](1) 520-800
Flag description:
three equal horizontal bands of red (top), blue, and orange
Economy Armenia
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 (copper, 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 liberalization program that resulted in
positive growth rates in 1995-2003. Armenia joined the WTrO in
January 2003. Armenia also has managed to slash inflation, stabilize
the local currency (the dram), and privatize most small- and
medium-sized enterprises. 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. 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. Armenia's severe trade imbalance has been
offset somewhat by international aid and foreign direct investment.
Economic ties with Russia remain close, especially in the energy
sector.
GDP:
purchasing power parity - $11.79 billion (2003 est.)
GDP - real growth rate:
9.9% (2]]>
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