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After several years of double-digit economic growth, Armenia is facing a severe economic recession with GDP declining at least 15% in 2009, despite large loans from multilateral institutions. Sharp declines in the construction sector and workers' remittances, particularly from Russia, are the main reasons for the downturn. Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agroindustrial complexes of the Soviet era. Armenia has managed to reduce poverty, slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Since the breakup of the Soviet Union in 1991, Armenia had made progress in implementing some economic reforms, including privatization, price reforms, and prudent fiscal policies, but geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made Armenia particularly vulnerable to the sharp deterioration in the global economy and the economic downturn in Russia. The conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh contributed to a severe economic decline in the early 1990s and Armenia's borders with Turkey and Azerbaijan remain closed. Armenia is particularly dependent on Russian commercial and governmental support and most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector. The electricity distribution system was privatized in 2002 and bought by Russia's RAO-UES in 2005. Construction of a pipeline to deliver natural gas from Iran to Armenia was completed in December 2008 but it is unlikely significant quantities of gas will flow through it until the Yerevan Thermal Power Plant renovation is completed in 2010. Armenia has some mineral deposits (copper, gold, bauxite). Pig iron, unwrought copper, and other nonferrous metals are Armenia's highest valued exports. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in recent years, but anti-corruption measures have been ineffective and the current economic downturn has led to a sharp drop in tax revenue and forced the government to accept large loan packages from Russia, the IMF, and other international financial institutions. Armenia will need to pursue additional economic reforms in order to regain economic growth and improve economic competitiveness and employment opportunities, especially given its economic isolation from two of its nearest neighbors, Turkey and Azerbaijan.
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$16.24 billion (2009 est.)
country comparison to the world: 132
$18.97 billion (2008 est.)
$17.76 billion (2007 est.)
note:
data are in 2009 US dollars
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$8.714 billion (2009 est.)
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-14.4% (2009 est.)
country comparison to the world: 210
6.8% (2008 est.)
13.8% (2007 est.)
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$5,500 (2009 est.)
country comparison to the world: 138
$6,400 (2008 est.)
$6,000 (2007 est.)
note:
data are in 2009 US dollars
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agriculture: 22.5%
industry:
43.5%
services:
34.1% (2009 est.)
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1.481 million (2007 est.)
country comparison to the world: 129
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agriculture: 46.2%
industry:
15.6%
services:
38.2% (2006 est.)
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7.1% (2007 est.)
country comparison to the world: 66
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26.5% (2006 est.)
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lowest 10%: 1.6%
highest 10%:
41.3% (2004)
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37 (2006)
country comparison to the world: 77
44.4 (1996)
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38.4% of GDP (2009 est.)
country comparison to the world: 7
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revenues: $1.923 billion
expenditures:
$2.484 billion; including capital expenditures of $NA (2009 est.)
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3.4% (2009 est.)
country comparison to the world: 108
9% (2008 est.)
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7.25% (2 December 2008)
NA% (31 December 2007)
note:
this is the Refinancing Rate, the key monetary policy instrument of the Armenian National Bank
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17.05% (31 December 2008)
country comparison to the world: 28
17.52% (31 December 2007)
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$1.359 billion (31 December 2008)
country comparison to the world: 103
$1.507 billion (31 December 2007)
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$950.1 million (31 December 2008)
country comparison to the world: 119
$765.2 million (31 December 2007)
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$1.98 billion (31 December 2008)
country comparison to the world: 100
$1.256 billion (31 December 2007)
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$NA (31 December 2009)
country comparison to the world: 111
$176 million (31 December 2008)
$105 million (31 December 2007)
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fruit (especially grapes), vegetables; livestock
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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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-12% (2009 est.)
country comparison to the world: 150
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5.584 billion kWh (2007 est.)
country comparison to the world: 109
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4.776 billion kWh (2007 est.)
country comparison to the world: 109
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451.3 million kWh; note - exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh region in Azerbaijan (2007 est.)
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418.7 million kWh; note - imports an unknown quantity from Iran (2007 est.)
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0 bbl/day (2009 est.)
country comparison to the world: 208
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49,000 bbl/day (2009 est.)
country comparison to the world: 98
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0 bbl/day (2007 est.)
country comparison to the world: 141
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45,200 bbl/day (2007 est.)
country comparison to the world: 93
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0 bbl (1 January 2009 est.)
country comparison to the world: 204
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0 cu m (2008 est.)
country comparison to the world: 95
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1.93 billion cu m (2008 est.)
country comparison to the world: 81
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0 cu m (2008 est.)
country comparison to the world: 203
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1.93 billion cu m (2008 est.)
country comparison to the world: 47
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0 cu m (1 January 2009 est.)
country comparison to the world: 202
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-$1.321 billion (2009 est.)
country comparison to the world: 136
-$1.355 billion (2008 est.)
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$714 million (2009 est.)
country comparison to the world: 159
$1.124 billion (2008 est.)
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pig iron, unwrought copper, nonferrous metals, diamonds, mineral products, foodstuffs, energy
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Germany 16.47%, Russia 15.45%, US 9.64%, Bulgaria 8.6%, Georgia 7.57%, Netherlands 7.48%, Belgium 6.71%, Canada 4.91% (2009)
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$2.72 billion (2009 est.)
country comparison to the world: 142
$3.763 billion (2008 est.)
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natural gas, petroleum, tobacco products, foodstuffs, diamonds
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Russia 24.02%, China 8.72%, Ukraine 6.15%, Turkey 5.39%, Germany 5.36%, Iran 4.07% (2009)
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$2.003 billion (31 December 2009 est.)
country comparison to the world: 115
$1.407 billion (31 December 2008 est.)
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$4.47 billion (30 June 2009)
country comparison to the world: 106
$3.449 billion (31 December 2008)
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drams (AMD) per US dollar - 360.07 (2009), 303.93 (2008), 344.06 (2007), 414.69 (2006), 457.69 (2005)
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