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Home » Economy of the World » Armenia
 

Armenia Economy
Located in the landlocked region between the Black Sea and the Caspian Sea, Armenia is one of the most beautiful countries in Eurasia. Armenia shares its borders with a number of countries that include Turkey, Georgia, Azerbaijan and Iran. Before the division of Soviet Union, Armenia was an integral part of it. Since the formation of Republic of Armenia, the economical conditions of the nation has undergone sea change. Armenia economy has been influenced heavily by the loans and grants extended by numerous countries. Apart from the financial aids from the various foreign nations, Armenia also gets substantial amount of loan and grant from International Monetary Fund (IMF), EBRD as well as the World Bank.

After its independence from the Soviet Union, Armenia has been facing problems regarding budget deficit and stability of its local currency. The huge amount of grants available from the IMF, World Bank and various nations have been able to to bring reduction in the nation's budget deficit and also helped in the emergence of several business entities. The aid has also helped the nation to develop in the sectors of health, education and energy.

Armenia economy has been witnessing significant changes since it became a member of the World Trade Organization (WTO) in the year 2003. In the year 2006 the gross domestic product of the country was estimated to be about $ 6.6 billion. In the same year the gross domestic product per capita or purchasing power parity of Armenia was estimated to be about $ 5400. The annual inflation rate has been controlled near about 2.6 %. Armenia economy has a growth rate of about 13.4%. In order to protect its environment from the harmful pollutants, the government of Armenia has levied a number of taxes on the water as well as air emissions. By implementing taxes on the solid waste disposals and various forms of emissions, the Government has amassed huge revenues. In the year 2004 the gross fixed investment in the country was recorded to be about 19 % of its GDP.



In the recent years, Armenia economy has been influenced considerably by its several industries. In the year 2002, the estimated industrial production growth rate was about 15 %. In the same year the Eurasian nation witnessed electricity production of about 6492 GWh, while the electricity consumption was recorded to be about 5797 GWh. Armenia exports a number of commodities that help them to increase their foreign exchange reserves. The exported commodities include energy, mineral products and even food stuffs. In the year 2005, the foreign exchange and gold reserve of the country was about $ 754.9 million. The government is now emphasizing more upon industrialization in order to develop the economical condition of the nation in the coming years.