Armenia Economic Structure

By: EconomyWatch Content   Date: 26 March 2010

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 Armenia economic structure is highly dependent on the agricultural productivity and industrial performance, particularly the construction sector. After years of high economic growth in the 2000s, the Armenian economy plunged into severe budget deficit due to the impact of global recession.

Armenia Economic Structure: Sector-wise GDP Composition

Traditionally, Armenia economic structure consisted of large agricultural sector and a small scale agro-industrial complex. Since the disintegration of Soviet Union, the country has developed its service sector as well, particularly in partnership with private and foreign investors.

 

Armenia faces several impediments to economic growth. It is a geographically isolated country and is highly dependent on the growth of Russian economy. A narrow export base also makes the economy vulnerable to global financial crisis. Another key problem is the economic dependency on the agricultural sector. As per 2009 figures, agriculture contributes 18.6% share of the GDP. However, it employs 46.2% of the working population. Low agricultural output results from the use of archaic methods of farming. Industry (33.5%) and service (48%) have the majority share in the country's GDP.

 

Armenia ; GDP Composition by Sectors

 

 

Armenia has a large construction sector that is highly focused on housing development. High employment rate and low turnover in the construction sector also hampers the growth of the service sector in the country.


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