Flag description: three equal horizontal bands of red (top), blue, and gold
Economy
Economy—overview: Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet area. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (gold, bauxite) are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic program that has resulted in positive growth rates in 1995–98. Armenia also managed to slash inflation and to privatize most small- and medium-sized enterprises. The chronic energy shortages Armenia suffered in recent years have been largely offset by the energy supplied by one of its nuclear power plants at Metsamor. The Russian financial crisis generated concerns about Armenia's economic performance in 1998. Although inflation dropped to 10% and GDP grew about 6%, the industrial sector remained moribund. Much of Armenia's population remains heavily dependent on remittances from relatives abroad, and remittances from Russia fell off sharply in 1998.
GDP: purchasing power parity—$9.2 billion (1998 est.)
GDP—real growth rate: 6% (1998 est.)
GDP—per capita: purchasing power parity?$2,700 (1998 est.)
GDP—composition by sector: agriculture: 35% industry: 30% services: 35% (1998 est.)
Population below poverty line: 50% (1998 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices): 10% (1998 est.)
Labor force: 1.6 million (1997)
Labor force—by occupation: manufacturing, mining, and construction 25%, agriculture 38%, services 37%
Unemployment rate: 20% (1998 est.)
Budget:
revenues: $322 million
expenditures: $424 million, including capital expenditures of $80
million (1998 est.)
Industries: much of industry is shut down; metal-cutting machine
tools, forging-pressing machines, electric motors, tires, knitted
wear, hosiery, shoes, silk fabric, washing machines, chemicals,
trucks, watches, instruments, microelectronics
Industrial production growth rate: NA%
Electricity—production: 7.6 billion kWh (1996)
Electricity—production by source: fossil fuel: 46.05% hydro: 26.32% nuclear: 27.63% other: 0% (1996)
Electricity—consumption: 7.6 billion kWh (1996)
Electricity—exports: 0 kWh (1996)
Electricity—imports: 0 kWh (1996)
Agriculture—products: fruit (especially grapes), vegetables; livestock
Exports: $230 million (f.o.b., 1998 est.)
Exports—commodities: gold and jewelry, aluminum, transport equipment, electrical equipment, scrap metal
Exports—partners: Iran, Russia, Turkmenistan, Georgia
Imports: $840 million (c.i.f., 1998 est.)
Imports—commodities: grain, other foods, fuel, other energy
Imports—partners: Iran, Russia, Turkmenistan, Georgia, US, EU
Debt—external: $820 million (of which $75 million to Russia) (1997 est.)
Economic aid—recipient: $245.5 million (1995)
Currency: 1 dram = 100 luma
Exchange rates: dram per US$1—535.62 (January 1999), 504.92 (1998), 490.85 (1997), 414.04 (1996), 405.91 (1995), 288.65 (1994)
Fiscal year: calendar year
Communications
Telephones: 730,000 (1998 est.)
Telephone system: the Ministry of Communications oversees the
Ministry of Posts and Telecommunications; the national operator is
Armentel; the Greek Telecoms Company owns 90% of Armentel and will
provide a $60 million eight-year loan; Armenia has about 4,000
Internet users on one satellite channel
domestic: local—350,000 telephones are located in Yerevan; a
fiber-optic loop provides digital service to 80,000 of Yerevan's
customers; GSM cellular is available in Yerevan, as is paging;
intercity—the former Soviet system provides service to 380,000
numbers mostly governmental
international: Yerevan is connected to the Trans-Asia-Europe line
through Iran; additional international service is available by
microwave, land line, and satellite through the Moscow switch; 1
INTELSAT earth station
Radio broadcast stations: AM 9, FM 6, shortwave 1 (1998)
Radios: NA
Television broadcast stations: 3 (in addition, programs are received by relay from Russia; 100% of the population receive Armenian and Russian TV programs) (1997)
Televisions: NA
Transportation
Railways:
total: 825 km in common carrier service; does not include industrial
lines
broad gauge: 825 km 1.520-m gauge (1992)
Highways:
total: 8,580 km
paved: 8,580 km
unpaved: 0 km (1996 est.)
Waterways: NA km
Pipelines: natural gas 900 km (1991)
Ports and harbors: none
Airports: 11 (1996 est.)
Airports—with paved runways:
total: 5
over 3,047 m: 2
1,524 to 2,437 m: 1
914 to 1,523 m: 2 (1996 est.)
Airports—with unpaved runways:
total: 6
1,524 to 2,437 m: 2
914 to 1,523 m: 3
under 914 m: 1 (1996 est.)
Military
Military branches: Army, Air Force and Air Defense Aviation, Air
Defense Force, Security Forces (internal and border troops)
Military manpower—military age: 18 years of age
Military manpower—availability:
males age 15–49: 922,124 (1999 est.)
Military manpower—fit for military service: