esulted in
positive growth rates in 1995-2006. Armenia joined the WTO in
January 2003. Armenia also has managed to slash inflation, stabilize
its currency, and privatize most small- and medium-sized
enterprises. Armenia's unemployment rate, however, remains high,
despite strong economic growth. 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 and bought by Russia's RAO-UES in 2005.
Armenia's severe trade imbalance has been offset somewhat by
international aid, remittances from Armenians working abroad, and
foreign direct investment. Economic ties with Russia remain close,
especially in the energy sector. The government made some
improvements in tax and customs administration in 2005, but
anti-corruption measures will be more difficult to implement.
Construction of a natural gas pipeline between Iran and Armenia has
been completed and it is scheduled to be commissioned by April 2007.
Investment in the construction and industrial sectors is expected to
continue in 2007 and will help to ensure annual average real GDP
growth of more than 10%.

GDP (purchasing power parity):
$15.99 billion (2006 est.)

GDP (official exchange rate):
$6.6 billion (2006 est.)

GDP - real growth rate:
10.5% (2006 est.)

GDP - per capita (PPP):
$5,400 (2006 est.)

GDP - composition by sector:
agriculture: 23.9%
industry: 32.8%
services: 43.3% (2006 est.)

Labor force:
1.2 million (2005)

Labor force - by occupation:
agriculture: 45%
industry: 25%
services: 30% (2002 est.)

Unemployment rate:
7.6% (2004 est.)

Population below poverty line:
43% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 1.6%
highest 10%: 41.3% (2004)

Distribution of family income - Gini index:
41.3 (2004)

Inflation rate (consumer prices):
1.1% (2006 est.)

Investment (gross fixed):
20.9% of GDP (2006 est.)

Budget:
revenues: $1.004 billion
expenditures: $1.6 billion; including capital expenditures of $NA
(2006 est.)

Agriculture - products:
fruit (especially grapes), vegetables; livestock

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