Economy - overview Under the old Soviet central planning system, Armenia had developeda modern industrial sector, supplying machine building tools, textiles, andother manufactured goods to sister republics in exchange for raw materialsand energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexesof the Soviet area. The privatization of industry has been at a much slowerpace. Armenia is a food importer and its mineral deposits (gold, bauxite)are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominatedregion of Nagorno-Karabakh and the embargoes imposed by Azerbaijan and Turkeycontributed to a severe economic decline in the early 1990s. By 1994, however,the Armenian Government had launched an ambitious IMF-sponsored economic programthat has resulted in positive growth rates in 1995 and 1996. Armenia alsomanaged to slash inflation and to privatize most small and medium-sized enterprises.The chronic energy shortages Armenia suffered in recent years has been partiallyoffset by the energy supplied by one of its nuclear power plants at Metsamor,which in 1996 supplied about 40% of the country's energy needs, accordingto the Armenian Government. Moreover, Armenia is expanding its energy importsfrom Iran.

GDP purchasing power parity - $9.7 billion (1996 estimate as extrapolatedfrom World Bank estimate for 1994)

GDP - real growth rate 4% (1996 est.)

GDP - per capita purchasing power parity - $2,800 (1996 est.)

GDP - composition by sector
agriculture: 35%
industry: 35%
services : 30% (1995 est.)

Inflation rate - consumer price index 5.7% (1996 est.)

Labor force
total : 1.6 million (1996)
by occupation: industry and construction 23%, agriculture 38%, services 37%, other2%

Unemployment rate 7.4% officially registered unemployed, but large numbers of underemployed(December 1996)

Budget
revenues : $NA
expenditures: $NA, including capital expenditures of $NA

Industries much of industry is shut down; metal-cutting machine tools, forging-pressingmachines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric,washing machines, chemicals, trucks, watches, instruments, microelectronics

Industrial production growth rate 1% (1996 est.)

Electricity - capacity 2.77 million kW (1994)

Electricity - production 6.3 billion kWh (1996)

Electricity - consumption per capita 1,462 kWh (1995 est.)

Agriculture - products fruit (especially grapes), vegetables; vineyards near Yerevan are famousfor brandy and other liqueurs; minor livestock sector

Exports
total value : $273 million (f.o.b., 1996)
commodities: gold and jewelry, aluminum, transport equipment, electrical equipment,scrap metal
partners: Iran, Russia, Turkmenistan, Georgia

Imports
total value : $830 million (c.i.f., 1996)
commodities: grain, other foods, fuel, other energy
partners: Iran, Russia, Turkmenistan, Georgia, US, EU

Debt - external $850 million (of which $75 million to Russia) (1995 est.)

Economic aid
recipient: ODA, $NA
note: commitments (excluding Russia), $1,385 million ($675 million in disbursements)(1992-95)

Currency 1 dram = 100 luma (introduced new currency in November 1993)

Exchange rates dram per US$1 - 443 (December 1996), 401.8 (end December 1995), 406(end December 1994)

Fiscal year calendar year

NOTE: The information regarding Armenia on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Armenia Economy 1997 information contained here. All suggestions for corrections of any errors about Armenia Economy 1997 should be addressed to the CIA.