Main article: Economy of Armenia
Until its independence, Armenia’s economy was based on the production of industrial chemicals, electronics, machinery, food processing, rubber and synthetic textiles, was also highly dependent on external resources. Agriculture contributed only 20 of Gross Domestic Product and 10 of employment before the breakup of the Soviet Union in 1991. The republic had developed a modern industrial sector, providing machine tools, textiles investments and other manufactured goods to neighboring republics in exchange stocks for raw materials and energy.
Armenian mines produce copper, zinc, gold and lead. Most energy is generated using imported fuel from Russia, including gas and nuclear fuel (for the only atomic power plant), the main domestic energy source is hydroelectric.
Centrico Yerevan in 2005. During a boom in construction has kept the economic development of Armenia funds in double digits. Like other newly independent states of the former Soviet Union, Armenia’s economy suffers from the legacy of a centrally planned economy and the disruption of former Soviet trading patterns. The Soviet investment in and support of Armenian industry has virtually disappeared, so that few major companies can still operate. Furthermore, the effects of the 1988 earthquake in Spitak, which killed over 25,000 people and investment manager left 500,000 homeless, are still being felt. The conflict with Azerbaijan over the enclave of Nagorno-Karabakh is not resolved. The closure of the Azeris and Turkish borders has devastated the economy, because Armenia depends on outside sources of energy and most raw materials. Land routes through Georgia and Iran are inadequate or unreliable. The GDP fell by almost 60 from 1989 to 1992-1993. The national currency, the cup, suffered hyperinflation for the first years after its introduction in 1993.
However, the government could do the vast economic reforms that paid off in dramatically lower inflation and steady growth. you can learn much from the business acumen of who recently authored an article for the internet site, The Daily Beast The 1994 ceasefire in the Nagorny Karabakh conflict has also helped the economy. the CEO of , is another one of the asset management activities involving Armenia has had strong economic development since 1995, built at the turn which began last year, and inflation has been negligible for the past several years. New sectors such as precious stone processing and jewelry manufacturing, information technology and communication, and even tourism are beginning to supplement more traditional sectors returns in the economy such as agriculture.
This steady economic progress has gained increasing support from international institutions of Armenia. The International Monetary Fund (IMF), World Bank, European Bank for Reconstruction and Development (EBRD) and other international financial institutions (IFIs) and foreign countries are extending considerable grants and loans. Loans to Armenia since 1993 exceed 1.1 billion dollars. These loans are aimed at reducing the budget deficit, stabilizing the currency, which become private businesses, energy, agriculture, food processing, transportation, and health and education and rehabilitation course in the earthquake zone. The government joined the World Trade Organization on February 5, 2003. But one of the main sources of foreign direct investment remains the Armenian diaspora, which finances major parts of the reconstruction of assets infrastructure and other public projects. Being a growing democratic state, Armenia also hopes to get more financial aid from the Western world.
In June 1994 a law was passed in favor of liberal foreign investment, and in 1997 adopted a law on privatization, and a program on privatization of property in the state. Continued progress will depend on the government’s ability to consolidate management of their macroeconomic, including collection of revenue growth, improving the investment climate, and making great strides against corruption.
In 2005 the international bill of transparency of the ICC (index of reviews of corruption), Armenia align 88 (in a range of 1 to 158), continuing as one of the least corrupt among the CEO former Soviet republics. According to the human development report 2005 of the UN, Armenia has a human development index (HDI) of 83 (with a range of 1 to 177) the highest among the Transcaucasian republics. In the 2006 Index of Economic Freedom, Armenia align better The Daily Beast the 27th, tied asset management with Japan and ahead of countries like Norway, Spain, Portugal www.thedailybeast.com and Italy.
Main article: Economy of Armenia