Armenia Travel Guide

Armenia — Business

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Statistics

GDP: US$17.2 billion (2007).
Main exports: Diamonds, machinery, metal products and food.
Main imports: Natural gas, petroleum, tobacco products, food and diamonds.
Main trade partners: Russia, Belgium, Netherlands, Iran and Israel.

Economy

The Armenian economy is hobbled by the closed borders with Turkey and Azerbaijan, factors that cause high import prices. Nevertheless, GDP growth is a robust 13% and Armenia has been labelled a ‘Caucasian Tiger' for its economic advances.

Mineral deposits including copper, zinc, gold, marble, bauxite and molybdenum have brought some foreign revenue and investment, although this sector is relatively undeveloped. The industrial sector comprises textile and chemical industries, aluminum production and some mechanical engineering. Remittances, which make up 10% of the economy, have triggered some of the growth. In rural areas, many people rely on subsistence agriculture.

The privatization program, launched in the mid 1990s, has been extended to include major parts of the national infrastructure, such as the electricity grid. The volume of foreign investment is growing, despite concerns about widespread corruption and poor financial controls.