Armenia Economy

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 Armenia is a European nation, located at the junction of Eastern Europe and Western Asia. It borders Turkey, Georgia, Azerbaijan and Iran. It is the first country to officially adopt Christianity as the state religion. Armenia is a landlocked country with mountainous terrains and fast flowing rivers. Formerly a part of Soviet Union, Armenia has a population of above three million (as per 2008 estimates). Classified as an emerging democracy, the country has average human development index. Approximately 26% of the population survives below the international poverty line (US $1.25 per day). Russia has a huge influence on the growth of Armenia economy. 

Armenia Economy: GDP

As per 2009 estimates available with CIA World Factbook, Armenia economy enjoys an annual GDP (purchasing power parity) of US $16.8 billion. It ranks 135 in the world as per GDP per capita (US $5,900). The country has enjoyed high levels of GDP growth rate in the 2000s. According to USAID (United States Agency for International Development), a range of external factors have fueled Armenia's economic growth. Some major factors include cash remittances, foreign aid and growth in tourism sector. 

 

Armenia Economy: Inflation

Inflation has been a major problem for Armenia. While the economy was on the verge of falling into deflation before 2005, the year 2009 was characterized by high inflation rate.

 

 Armenia Economy: Currency

The Drams (AMD) is the official currency of Armenia economy. Although the currency has low value in the international market, it has significantly progressed after 2003. In the year 2005, one US Dollar had the value of 457.69 Armenian Drams. This has reduced to only 360.7 Armenian Drams in 2009.

 

Armenia Economy: Key Statistics

Here are some major statistical figures for Armenia Economy:

 

Labor force

1.481 million (2007 est.)

Unemployment rate

7.1% (2007 est.)

Budget revenues

$1.855 billion (2009 est.)

Budget expenditures

$2.365 billion (2009 est.)

Industrial production growth rate

-10% (2009 est.)

Current account balance

-$1.086 billion (2009 est.)

Exports

$715 million (2009 est.)

Imports

$2.547 billion (2009 est.)

Foreign exchange reserve

$885 million (2009 est.)

External debt

$4.47 billion (June 2009)

 

The 2008 global economic turndown had severe impact on the Armenia economy. Due to recession, revenue from external sources dipped which caused major budget deficit.