omy

Overview:
Under the old central planning system, Armenia had built up a
developed industrial sector, supplying machine building equipment,
textiles, and other manufactured goods to sister republics in exchange
for raw materials and energy resources. Armenia is a large food
importer and its mineral deposits (gold, bauxite) are small. The
economic decline in the past three years (1991-93) has been
particularly severe due to the ongoing conflict over the Armenian
enclave of Nagorno-Karabakh in Azerbaijan. Azerbaijan and Turkey have
blockaded pipeline and railroad traffic to Armenia for its support of
the Karabakh Armenians. This has left Armenia with only sporadic
deliveries of natural gas through unstable Georgia, while other fuel
and raw materials are in critical short supply. Inflation, roughly 14%
per month in the first nine months of 1993, surged even higher in the
fourth quarter. In late 1993, most industrial enterprises were either
shut down or operating at drastically reduced levels. Only small
quantities of food were available (mostly humanitarian aid), heat was
nonexistent, and electricity strictly rationed. An economic recovery
cannot be expected until the Nagorno-Karabakh conflict is settled and
until transportation through Georgia improves.
National product:
GDP - purchasing power equivalent - $7.1 billion (1993 estimate from
the UN International Comparison Program, as extended to 1991 and
published in the World Bank's World Development Report 1993; and as
extrapolated to 1993 using official Armenian statistics, which are
very uncertain because of major economic changes since 1990)
National product real growth rate:
-9.9% (1993 est.)
National product per capita:
$2,040 (1993 est.)
Inflation rate (consumer prices):
14% per month average (first 9 months, 1993)
Unemployment rate:
6.5% of officially registered unemployed but large numbers of
underemployed (1993 est.)
Budget:
revenues:
$NA
expenditures:
$NA, including capital expenditures of $NA
Exports:
$31 million to countries outside the FSU (f.o.b., 1993)
commodities:
machinery and transport equipment, light industrial products,
processed food items, alcoholic products (1991)
partners:
NA
Imports:
$87 million from countries outside the FSU (c.i.f., 1993)
commodities:
grain, other foods, fuel, other energy (1991)
partners:
Russia, US, EC
External debt:
$NA
Indu