Armenia Archives - Economy Watch

Armenia Loses Foreign Investment: Debt Burden Increases

Armenia is losing credibility among foreign investors as high debt and mismanagement scare away members of the business community, according to AzerNews. Armenia relies on foreign investment, Russian remittances, and loans to sustain the economy, but authorities squandered most of the loan money, and investment projects have failed to spur economic growth thus far. Armenia is a poor nation that struggles with high rural poverty and increasing unemployment rates.

Armenian President Warns Azerbaijan Clash could Morph into Full-Scale War

In a meeting with ambassadors, Armenian President Serzh Sargsyan stated that conflict over the disputed Nagorno-Karabakh territory could erupt into a regional war between his country and Azerbaijan, according to Reuters.

Armenia lost 20 troops during skirmishes with Azerbaijani forces, as members of the international community call for an immediate cease-fire. Nagorno-Karabakh is part of Azerbaijan, but retains a large number of ethnic Armenians.

IMF Expects Positive Economic Performance in Armenia for 2015

The International Monetary Fund believes the bulk of Armenia’s 2015 economic growth will come from the agriculture sector, according to The Times of India. Over 40 percent of the nation’s employees work in agriculture.

Armenia: Doubts Abound on Anti-Corruption Initiative

The Armenian government is pressing ahead with a new effort to contain corruption. But some critics question the integrity of those in charge of the initiative, citing possible conflicts of interest.

Armenia’s cabinet decided to revamp a state Anti-Corruption Council on February 19, one month after the European Union announced plans to allocate 21 million euros (nearly $23.3 million) to Yerevan. The EU money would be designed to promote anti-corruption programs and civil service reform.

Armenia: Yerevan Mending Fences with EU

With the Russian economy hitting the skids, it looks like Armenia wants to hedge its economic bets. Although Yerevan became a member of the Russia-led Eurasian Economic Union in January, a senior Armenian government official told EurasiaNet.org that the country is working to complete an updated version of an EU Association Agreement that Armenian officials put on hold back in 2013.

Looking at Armenian-Iranian Relations through a Russian Lens

The late January visit to Armenia by Iranian Foreign Minister Javad Zarif got little media attention, but it could have significant ramifications for geopolitics in Eurasia. Specifically, the trip could help Russia gain a trade outlet that softens the blow of Western sanctions.

Armenia – Fast Facts

Armenia is a lower middle-income economies coming under the Europe and central Asian region, as to the classification made by the World Bank on the basis of income and region for the year 2006.

Armenia Economic Forecast

Until 1991, Armenia was a part of the Soviet Union but once split, economic reform began to include change in financial policies, privatization, and pricing reform. By 1994, Armenia’s government started an aggressive economic liberalization program sponsored by the International Monetary Fund or IMF, which had a positive impact on economic growth and rates. However, the country was hit by the world financial crisis in 2007, dropping the Gross Domestic Product rate from more than 10% to 6.8%.