Location: South western Asia
Capital: Yerevan
Population (2012): 2,970,495
Surface area: 29,743 sq km
Currency: Dram
GDP per capita (2011): US $ 3,270
Economy – Overview:
After several years of double-digit economic growth, Armenia faced a severe economic recession with GDP declining more than 14% in 2009, despite large loans from multilateral institutions. Sharp declines in the construction sector and workers’ remittances, particularly from Russia, were the main reasons for the downturn. The economy began to recover in 2010 with 2.1% growth, and picked up to 4.6% growth in 2011, before slowing to 3.8% in 2012. Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era. Armenia has managed to reduce poverty, slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Since the breakup of the Soviet Union in 1991,
Armenia had made progress in implementing some economic reforms, including privatization, price reforms, and prudent fiscal policies, but geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made Armenia particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia.
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 have been ineffective and the current economic downturn has led to a sharp drop in tax revenue and forced the government to accept large loan packages from Russia, the IMF, and other international financial institutions. Armenia will need to pursue additional economic reforms in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.
Human Development Index ranking (2012): 87 out of 186
Net Official Development Assistance (ODA) (2011): US $ 378 million
Top Three Donors of gross ODA: IDA, United States, Japan
FDI inflows (2012): $ 489 million
Total External Debt (2011): US $ 7.4 billion
External debt stock (% of GNI) (2011): 68.3
Merchandise exports (2011): US$ 1,334 million
Terms of trade index (2012): 117.6
Major export commodities: Copper ores and concentrates, alcohol and ferro-alloys
Cost to export per container (2013): US $ 1,815
HIPC Position (2013): Not eligible
United Nations Membership date: 2 March 1992
New York Mission:
Address: Permanent Mission of the Republic of Armenia to the United Nations
119 East 36th Street, New York, N.Y. 10016
Telephone: (212) 686-9079, -3871
Telefax: (212) 686-3934
e-mail: armenia@un.int
website: www.un.int/armenia
Correspondence: English
National holiday: 21 September