For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
Armenia has been growing at a fast pace in recent years. Expatriate remittances, an increase in international copper prices, and a business-friendly monetary policy aided the country's economic development. Other strengths include major mining resources (molybdenum, zinc, copper, gold), financial support from international organizations, considerable foreign exchange reserves, and membership in the Eurasian Economic Union (EARU) as well as a partnership with the EU. However, the economic crisis caused by the Covid-19 pandemic and the armed conflict with Azerbaijan over the Nagorno-Karabakh enclave severely affected growth, which turned negative in 2020. Despite that, Armenia’s economy has shown resilience to recent shocks – including the Russian invasion of Ukraine – and grew by an estimated 7% in 2022), driven by large inflows of external income, capital, and labour into the country. Amid tighter global financial conditions and weaker external demand, the IMF expects growth to decelerate to 3.5% this year and 4.4% in 2024.
According to IMF data, public debt represented 52.3% of GDP in 2022, returning around the pre-pandemic level, and should remain stable over the forecast horizon. External debt decreased both in dollar and dram terms, as the national currency appreciated 22% over the year, becoming the world's top-performing currency. The state budget for 2023 forecasts a deficit of 3.1% of GDP: expenses for the year are planned at AMD 2 trillion 590 billion (27.8% of GDP), or 18.3% more than in the approved budget for 2022, while revenues should also grow to AMD 2 trillion 204 billion. Inflation has increased to 8.5% in 2022 on the back of supply and demand shocks and the Central Bank has raised the policy rate by 625 basis points aiming to steer inflation toward its medium-term target of 4%. According to the IMF forecast, the inflation rate should gradually decrease to 7% in 2023 and 5% in the following year. Armenia’s economy continues to face structural challenges, such as the need for further improvement in the business and investment environment, high unemployment, lingering labour skills mismatches, and weak firm competitiveness. Significant structural reforms have taken place in the areas of public financial management, revenue administration, the financial sector, and governance (IMF).
The unemployment rate was estimated at 15.2% in 2022 by the IMF and should remain relatively stable over the forecast horizon. The latest governmental figures show that the national poverty rate is estimated at 26.5%, while the GDP per capita (PPP) stood at USD 16,798 as of 2022.
|Main Indicators||2020||2021||2022 (E)||2023 (E)||2024 (E)|
|GDP (billions USD)||12.64||13.86||19.50||23.73||25.12|
|GDP (Constant Prices, Annual % Change)||-7.2||5.7||12.6||5.5||5.0|
|GDP per Capita (USD)||4,269||4,679||6,584||8,008||8,478|
|General Government Gross Debt (in % of GDP)||63.5||60.2||49.3||49.3||50.2|
|Inflation Rate (%)||1.2||7.2||8.7||7.1||5.0|
|Unemployment Rate (% of the Labour Force)||18.2||15.3||12.5||12.5||13.0|
|Current Account (billions USD)||-0.48||-0.52||0.02||-0.41||-0.84|
|Current Account (in % of GDP)||-3.8||-3.7||0.1||-1.7||-3.3|
Source: IMF – World Economic Outlook Database , Latest available data
Note: (e) Estimated Data
Armenia's economy is based on agriculture, mineral exploitation, hydroelectricity, telecommunications, jewellery, and tourism. Agriculture represents 11.3% of GDP and employs 24% of the total workforce (World Bank, latest data available). Armenia suffers from low levels of cultivation of arable land, limited resources and low growth potential due to political instability. Small and fragmented plots are used for subsistence agriculture. Main crops include potatoes, tomatoes, grapes, wheat and melons, cotton and tobacco. Armenia's livestock sector is also pivotal, representing almost 40% of the country’s gross agricultural product. The latest figures from FAO show that the 2022 total cereal output was forecast at about 233,000 tonnes, 5% below the five-year average; while that of wheat and barley was estimated at 130,000 tonnes and 70,000 tonnes, respectively, above the low outputs harvested in 2021, but still slightly below the average levels.
The industry contributes 26.6% of GDP and employs 25% of the total workforce. Armenia has copper, molybdenum, bauxite, zinc, lead, iron, gold, and mercury deposits, the basis of the country’s chemical industry sector and its main exports. The mining sector is one of the largest contributors to GDP and exports (especially metal ores). Hydroelectricity is very well developed in the country, to the point that Armenia is now exporting it (although most of it is foreign-owned). The manufacturing sector alone accounts for 11% of GDP (World Bank). According to official government data, the industrial output in 2022 grew by 7.8% year-on-year to about AMD 2.76 trillion.
Services represent 52.8% of GDP and employ 51% of the active population. The sector includes jewellery (particularly because of the size of its diamonds) and tourism. The ICT sector is also growing and is considered a priority by the government. Banking, in particular, has grown: it is considered a solid and stable sector and is composed of 17 commercial banks (European Banking Federation). The tourism sector was severely affected by the COVID-19 pandemic and the travel restrictions that followed; nevertheless, it showed signs of recovery in 2022, as the country welcomed 1.54 million tourists in the first eleven months of the year (around 83% of the pre-pandemic level – data Tourism Committee).
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||24.0||24.8||51.2|
|Value Added (in % of GDP)||11.3||26.6||52.8|
|Value Added (Annual % Change)||-0.6||3.4||6.9|
Source: World Bank - Latest available data.
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|Armenian Dram (AMD) - Average Annual Exchange Rate For 1 MUR||13.52||14.00||14.23||13.53||12.43|
Source: World Bank - Latest available data.
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The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Foreign trade in Armenia represents 70.1% of GDP (World Bank, latest data available), and the country follows an open and liberal policy in regard to international commerce. Overall, minerals represent more than half of total exports. Main export commodities include copper ores, undenatured ethyl alcohol, cigars, ferroalloys, and gold. Armenia mainly imports petroleum gases and oils, medicaments, diamonds, and motor cars.
Armenia's main export destinations are Russia (26.8%), China (13.3%), Switzerland (12.1%), Bulgaria (6.7%), and the Netherlands (6.4%). The Russian Federation is also the main import partner (33.5%), followed by China (16.2%), Iran (8.2%), Italy (4.2%) and Germany (3.9% - data Comtrade). The country has been searching for new energy sources, especially after the Russian-Georgian conflict, which temporarily disrupted its hydrocarbon supply and revealed the country's energy vulnerabilities. Tensions remain with a couple of its neighbouring countries, such as Azerbaijan and Turkey, and have an impact on trade. Armenia's closeness with Russia and its adhesion to the Eurasian Economic Union limit the country's ability to further integrate with the EU (that considered as a whole is the country’s main export destination).
Armenia has a structural trade deficit, which was estimated at 8.5% of GDP in 2021 (World Bank). According to figures by WTO, in 2021, Armenia exported goods with a total value of USD 3 billion (+18.8% year-on-year), while it imported goods with a total value of USD 5.3 billion (recording an increase of 17.5%). With regards to services, the country exported USD 1.6 billion and imported USD 1.2 billion (+56.2% and +32.8% vis-à-vis one year earlier, respectively). According to the latest figures by the National Statistics Committee (NSC), Armenia's exports in the first ten months of 2022 rose by 71.2% against January-October 2021, to about USD 4.2 billion, whereas imports reached USD 6.8 billion, an increase of 63.5% compared to the same period one year earlier. The bulk of Armenian exports were mining industry products (slightly above 20%) and precious and semi-precious stones and metals (18.5%).
|Foreign Trade Indicators||2017||2018||2019||2020||2021|
|Imports of Goods (million USD)||4,189||4,963||5,514||4,559||5,357|
|Exports of Goods (million USD)||2,245||2,412||2,640||2,544||3,023|
|Imports of Services (million USD)||1,921||2,125||2,414||947||1,258|
|Exports of Services (million USD)||1,880||2,174||2,385||1,076||1,681|
|Imports of Goods and Services (Annual % Change)||24.6||13.3||11.6||-31.5||12.9|
|Exports of Goods and Services (Annual % Change)||19.3||5.0||16.0||-33.5||16.6|
|Imports of Goods and Services (in % of GDP)||49.0||53.1||54.8||39.7||43.8|
|Exports of Goods and Services (in % of GDP)||38.2||39.4||41.4||29.8||35.3|
|Trade Balance (million USD)||-1,405||-1,763||-1,722||-1,382||-1,505|
|Trade Balance (Including Service) (million USD)||-1,244||-1,753||-1,809||-1,264||-1,108|
|Foreign Trade (in % of GDP)||87.2||92.5||96.1||69.5||79.2|
Source: WTO – World Trade Organisation ; World Bank , Latest Available Data
(% of Exports)
|United Arab Emirates||10.1%|
|See More Countries||28.9%|
(% of Imports)
|See More Countries||38.5%|
Source: Comtrade, Latest Available Data
|5.3 bn USD of products exported in 2022|
|Copper ores and concentratesCopper ores and concentrates||12.5%|
|Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90)||7.9%|
|Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form||7.8%|
|Cigars, cheroots, cigarillos and cigarettes of...Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes||6.0%|
|Undenatured ethyl alcohol of an alcoholic strength...Undenatured ethyl alcohol of an alcoholic strength of < 80%; spirits, liqueurs and other spirituous beverages (excl. compound alcoholic preparations of a kind used for the manufacture of beverages)||5.5%|
|See More Products||60.3%|
|8.6 bn USD of products imported in 2022|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||6.9%|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||6.7%|
|Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons||6.3%|
|Diamonds, whether or not worked, but not mounted...Diamonds, whether or not worked, but not mounted or set (excl. unmounted stones for pick-up styluses, worked stones, suitable for use as parts of meters, measuring instruments or other articles of chapter 90)||4.5%|
|Telephone sets, incl. telephones for cellular...Telephone sets, incl. telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, incl. apparatus for communication in a wired or wireless network [such as a local or wide area network]; parts thereof (excl. than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528)||4.4%|
|See More Products||71.2%|
Source: Comtrade, Latest Available Data
To go further, check out our service Import Export Flows.
|1.1 bn USD of services exported in 2020|
|Information servicesInformation services||1.51%|
|Personal travelPersonal travel||23.38%|
|Health-related expenditureHealth-related expenditure||3.41%|
|Education-related expenditureEducation-related expenditure||1.67%|
|Business travelBusiness travel||3.74%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||0.96%|
|Air transportAir transport||1.72%|
|Construction abroadConstruction abroad||7.23%|
|Construction in the compiling...Construction in the compiling economy||0.10%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||4.00%|
|Other business servicesOther business services||1.82%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||1.07%|
|Advertising, market research,...Advertising, market research, and public opinion polling||0.23%|
|Architectural, engineering,...Architectural, engineering, and other technical services||0.08%|
|Operational leasing servicesOperational leasing services||1.34%|
|Life insurance and pension fundingLife insurance and pension funding||0.01%|
|Telecommunications servicesTelecommunications services||1.38%|
|Postal and courier servicesPostal and courier services||0.07%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.64%|
|Audiovisual and related servicesAudiovisual and related services||0.33%|
|Embassies and consulatesEmbassies and consulates||3.13%|
|1.0 bn USD of services imported in 2020|
|Sea transportSea transport||6.81%|
|Air transportAir transport||4.38%|
|Personal travelPersonal travel||19.81%|
|Health-related expenditureHealth-related expenditure||2.66%|
|Education-related expenditureEducation-related expenditure||1.74%|
|Business travelBusiness travel||9.12%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||4.60%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||9.98%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||9.90%|
|Advertising, market research,...Advertising, market research, and public opinion polling||1.77%|
|Other business servicesOther business services||1.04%|
|Architectural, engineering,...Architectural, engineering, and other technical services||0.90%|
|Operational leasing servicesOperational leasing services||1.33%|
|Merchanting and other trade-related...Merchanting and other trade-related services||0.02%|
|Other trade-related servicesOther trade-related services||0.02%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||1.57%|
|Audiovisual and related servicesAudiovisual and related services||0.83%|
|Embassies and consulatesEmbassies and consulates||1.23%|
|Information servicesInformation services||0.06%|
|Construction in the compiling...Construction in the compiling economy||1.77%|
|Telecommunications servicesTelecommunications services||1.10%|
|Postal and courier servicesPostal and courier services||0.11%|
Source: United Nations Statistics Division, Latest Available Data
- Civil Contract party: liberalist, reformist. It obtained 71 seats out of 107 in the latest 2021 elections
- Armenia Alliance: nationalist, pro-Russia. It has 29 seats in the National Assembly
- I Have Honor Alliance: nationalist, pro-Russia, it consists of the Republican Party of Armenia (right-wing, national conservative party) and the Homeland Party. The alliance obtained 7 seats in the latest election
Other parties include:
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
On March 16, 2020, Armenia declared a state of emergency, which was extended until May 14, 2020. Measures include school and university closures, travel bans on foreign citizens from high risk countries, strict quarantine measures and restrictions on movement and public transport.
For a list of the temporary restrictions on the different types of economic activities, click here (in Armenian), whereas the official portal of the National Center for Disease Control provides information on the sanitary measures to take in order to avoid infections.
Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The UK Foreign travel advice also provides comprehensive travelling abroad advice for all countries, including the latest information on health, safety, security, entry requirements and travel warnings.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.
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Latest Update: September 2023