Economy Of Armenia
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Economy overview
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Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (copper, gold, bauxite) are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic liberalization program that resulted in positive growth rates in 1995-2003. Armenia joined the WTrO in January 2003. Armenia also has managed to slash inflation, stabilize the local currency (the dram), and privatize most small- and medium-sized enterprises. The chronic energy shortages Armenia suffered in the early and mid-1990s have been offset by the energy supplied by one of its nuclear power plants at Metsamor. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor, which is under international pressure to close. The electricity distribution system was privatized in 2002. Armenia's severe trade imbalance has been offset somewhat by international aid and foreign direct investment. Economic ties with Russia remain close, especially in the energy sector.
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GDP
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purchasing power parity - $11.79 billion (2004 est.)
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GDP - real growth rate
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9.9% (2004 est.)
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GDP - per capita
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purchasing power parity - $3,500 (2004 est.)
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GDP - composition by sector
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agriculture: 23.4%
industry: 35.1%
services: 41.5% (2004 est.)
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Investment gross fixed
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19.8% of GDP (2004 est.)
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Population below poverty line
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50% (2002 est.)
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Household income or consumption by percentage share
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lowest 10%: 2.3%
highest 10%: 46.2% (1999)
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Distribution of family income - Gini index
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44.4 (1996)
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Inflation rate consumer prices
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4.8% (2004 est.)
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Labor force
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1.4 million (2001)
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Labor force by occupation
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agriculture 45%, industry 25%, services 30% (2002 est.)
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Unemployment rate
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20% (2003 est.)
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Budget
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revenues: $425.9 million
expenditures: $460.3 million, including capital expenditures of $NA (2004 est.)
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Public debt
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Agriculture products
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fruit (especially grapes), vegetables; livestock
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Industries
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diamond-processing, metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry manufacturing, software development, food processing, brandy
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Industrial production growth rate
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15% (2002 est.)
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Electricity production
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6.479 billion kWh (2001)
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Electricity production by source
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fossil fuel: 42.3%
hydro: 27%
other: 0% (2001)
nuclear: 30.7%
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Electricity consumption
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5.784 billion kWh (2001)
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Electricity exports
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704 million kWh; note - exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh region in Azerbaijan (2001)
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Electricity imports
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463 million kWh; note - imports an unknown quantity from Iran (2001)
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Oil production
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0 bbl/day (2001 est.)
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Oil consumption
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5,700 bbl/day (2001 est.)
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Oil exports
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NA (2001)
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Oil imports
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NA (2001)
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Oil proved reserves
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Natural gas production
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0 cu m (2001 est.)
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Natural gas consumption
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1.4 billion cu m (2001 est.)
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Natural gas exports
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0 cu m (2001 est.)
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Natural gas imports
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1.4 billion cu m (2001 est.)
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Natural gas proved reserves
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Current account balance
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$-210 million (2004 est.)
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Exports
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$735 million f.o.b. (2004 est.)
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Exports commodities
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diamonds, mineral products, foodstuffs, energy
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Exports partners
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Belgium 18.2%, UK 16.8%, Israel 15.7%, Russia 12.1%, Iran 7.9%, US 6.3%, Germany 5% (2003)
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Imports
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$1.18 billion f.o.b. (2003 est.)
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Imports commodities
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natural gas, petroleum, tobacco products, foodstuffs, diamonds
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Imports partners
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Belgium 11.6%, Russia 11.6%, Israel 11.3%, US 9.5%, Iran 8.8%, Germany 6.7%, UAE 5.4%, Italy 4.7%, Ukraine 4.6% (2003)
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Reserves of foreign exchange gold
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$509.4 million (2004 est.)
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Debt external
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$905 million (June 2001)
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Economic aid recipient
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ODA $170 million (2000)
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Currency
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dram (AMD)
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Currency code
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AMD
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Exchange rates
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drams per US dollar - 578.763 (2002), 555.078 (2001), 539.526 (2000), 535.062 (1999)
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Fiscal year
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calendar year
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Applied Language Solutions offer English to Armenian Translation , English to Russian Translation .
This information was reproduced in part from the CIA World Fact book.
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