Armenia is one of the countries of the South Caucasus that has a territory of 29,743 km² and shares borders with Turkey, Georgia, Azerbaijan and Iran, its roots are one of the oldest in the world and it is far from the sea; Despite being part of Europe, it is a transcontinental nation whose economy you will learn about throughout the reading of this post.
Armenian economic growth
Armenia’s economy suffered a major recession during 2009, beginning to recover by 2020. The Soviet influence propelled its industries, after supplying machines and tools for the manufacture of different textile products.
Notwithstanding, after its independence, small-scale agriculture was reactivated, but the industry continued to represent 30% of its products; being in turn 40% of its workforce used in this productive area and construction.
In terms of production, they have important manufactures and products from mining, to which are added the creation of machinery and synthetic rubber as manufactured goods.
As a legacy of its Soviet era, it has a nuclear power plant; which remained operational despite the damage caused in many parts of this country by the earthquake suffered in 1988.
Its national currency is the dram, although after its independence from the Soviet Union, it continued to use the currency of this country for a few more years within its territory.
Products that are the basis of the economy of Armenia
Armenia has an economy based primarily on the production generated by its manufacturing and mining; with goods obtained in the form of machinery and products derived from its synthetic rubber.
The main industries that remain operational in its territory are those dedicated especially to diamond processing, metal forging machinery, tires, lingerie, electric motors, textile producers, microelectric instruments, software development, jewelry manufacturing, manufacturing of various machines and tools and food processing, among some others.
They obtain a significant amount of income through the export of mineral products, pig iron, non-iron metals, diamonds, food and energy; however, they need to import oil, tobacco, natural gas, rough diamonds and different types of food.
Main economic activities of Armenia
Armenia’s economy has been affected over the years, primarily because of the conflicts it has experienced to maintain ownership of its territory; today it is basically an agro-industrial country; In this case, the contribution of this line within the GDP is 31.1%.
Industrial production supplies 21.8%, while commercial activities generate 8.7%, transport 5.1% and the remaining 24.9% is obtained from other sectors.
Its natural resources are basically represented by mineral materials such as molybdenum, copper, zinc, gold and aluminum. While within the agricultural products they stand out in the production of grapes, peaches, legumes, figs and apricots.
In addition to this they raise sheep and cattle; which allows them to complement their economy; plus the income obtained with its industries dedicated to the elaboration of machinery and equipment.
As indicated above, it has an important source of income from the export of copper minerals and its concentrates; also pomace of grapes and other products.
Armenia is placed in the economy number 134 worldwide based on its GDP volume, registered for the year 2020 a public debt of the order of 7,041 million euros; with a human development index that places it in 81st place.
It is a country where you have a certain facility to do business; placing itself in this sense in the 41st position of the Doing Business ranking.
At this point in the reading, it is clear that Armenia is a country with sufficient economic potential to continue developing and growing, while improving the quality of life of its inhabitants, as long as conditions continue to be favorable for it. Discover more interesting aspects about this nation in other articles already available on our blog.