Armenia

The first country to formally accept Christianity, Armenia is concerned with the problem over Nagorno-Karabakh; Moscow gave this region, whose people are predominantly Armenian, to Soviet Azerbaijan in the 1920s. The two countries have been fighting over the region since 1988; a ceasefire has been in place since 1994. With the Azerbaijani and Turkish borders closed, the Armenian economy has been in trouble, given its reliance on energy and raw materials that come from abroad. But, economic reforms have still taken place, and have resulted to economic growth since 1995. Industries, like agriculture, are being enhanced by incoming industries such as information and communication technology, and tourism.

Main Airports

Zvartnots (EVN)

U.S. Embassy

1 American Avenue
tel: 374-10-46-47-00

Statistics

GDP: purchasing power parity:

$13.46 billion (2005 est.)

GDP - real growth rate:

13.9% (2005 est.)

GDP - per capita: purchasing power parity:

4,500 (2005 est.)

Inflation rate (consumer prices):

0.6% (2005 est.)

Labor force:

1.2 million (2005)

Exports:

$800 million f.o.b. (2005 est.)

Exports - partners:

Germany 15.6%, Netherlands 13.7%, Belgium 12.8%, Russia 12.2%, Israel 11.5%, US 11.2%, Georgia 4.8% (2005)

Imports:

$1.5 billion f.o.b. (2005 est.)

Imports - partners:

Russia 13.5%, Belgium 8%, Germany 7.9%, Ukraine 7%, Turkmenistan 6.3%, US 6.2%, Israel 5.8%, Iran 5%, Romania 4.2% (2005)

Population:

2,976,372 (July 2006 est.)

Population growth rate:

-0.19% (2006 est.)

Population Below Poverty Line:

43% (2003 est.)

Major Industries:

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

Employing Workers: 41*

Registering Property: 2*

Enforcing Contracts: 18*

Closing a Business: 40*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Armenia	Region
Procedures (number)	9	9.4
Time (days)	24	32

Armenia Risk Assessment

Country Rating

Rating: C

A very uncertain political and economic outlook and a business environment with many troublesome weaknesses can have a significant impact on corporate payment behaviour. Corporate default probability is high.

Risk Assessment

In 2007 Armenia again posted two-digit growth. Construction remained the main economic engine thanks to major investments in mining, metallurgy, and energy as well as in residential property and office buildings in the capital Erevan. Transfers from Armenians residing abroad spurred demand. GDP growth, although down slightly from 2007, should remain high this year.

The dynamism of domestic demand has undermined external accounts but with foreign exchange reserves still at comfortable levels. Although debt ratios have been moderate thanks to prudent fiscal policy, tax revenues have not sufficed to meet the country's infrastructure and education needs.

Armenia has successfully carried out a radical transformation to a market economy. Although the legal and institutional environment is relatively satisfactory, corruption is still a major weakness. The legislative elections in June 2007 and the presidential election early this year will not affect Armenia's political and economic overtures to the West and the country also maintains very good relations with Moscow. Armenia's main weakness has been its geographic and political isolation, its borders closed with its two principal neighbours, Turkey and Azerbaijan. A renewal of hostilities with Azerbaijan over disputed Nagorno-Karabakh moreover remains a possibility.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation