Republic of Armenia

Economic Overview

The Armenian economy has recovered impressively since a severe economic recession saw GDP decline more than 14% in 2009.

The economy recovered in 2010 with 2.1% growth, and has since grown even faster in the last three years.

Armenian mines produce copper, zinc, gold, and lead. The vast majority of energy is produced with fuel imported from Russia, including gas and nuclear fuel (for its one nuclear power plant); the main domestic energy source is hydroelectric. Small deposits of coal, gas, and petroleum exist but have not yet been developed.
Ports & terminal: Armenia is landlocked. The nearest terminal is in Poti, Georgia (GEPTI).

Note: Armenia has two open trade borders – Iran and Georgia – because its borders with Azerbaijan and Turkey have been closed since 1991 and 1993 respectively.

Exports

Pig iron, unwrought copper, nonferrous metals, diamonds, mineral products, foodstuffs and energy.

Imports

Natural gas, petroleum, tobacco products, foodstuffs and diamonds.

Principal trading partners – exports

• Russia: 19.6%
• Germany: 10.7%
• Bulgaria: 9.1%
• Belgium: 8.9%
• Iran: 6.9%
• USA: 6.1%
• Canada: 6%
• Georgia: 5.7%
• Netherlands: 5.6%
• Switzerland: 5%

Principal trading partners – imports

• Russia: 20%
• Germany: 11%
• Bulgaria: 9%
• Belgium: 9%
• Iran: 6.5%
• USA: 6.1%
• Canada: 5.9%
• Netherlands: 5.6%

Composition of GDP:

• Services: 42.1%
• Industry: 37.3%
• Agriculture: 20.6%

Exchange Controls

Armenia does not restrict the flow of Armenian or foreign currency into or out of the country.

Certain reporting obligations are imposed to control money laundering.

Certain limitations on the amount of importing and exporting of cash without customs declaration are applied (approx. €10,000 for export and €15,000 for import).