Macroeconomic Overview
Macroeconomic Overview
Armenia was ranked frst among CIS and CEE countries in GDP per-capita growth rates from 2000 to 2008. Growth slowed at the end of 2008, and actually declined in 2009, primarily due to the effects of the global economic crisis. But in 2010-2011, the economy experienced renewed growth. The industrial structure of the economy has become more diversifed in recent years as well: services and industry now make up 60 percent of GDP, versus 40 percent prior to the crisis. During the post-crisis period the industrial sector has demonstrated the highest growth rates (15.3%) compared to other sectors. Infation from 2000 to 2008 was relatively low (see Figure 5), but increased in 2010 because of higher food prices in international markets, and a decline in local agricultural production. Monetary tightening stabilized price levels in 2011.
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FIGURE 3. GDP GROWTH (%) AND GDP PER CAPITA (US $), 2001-2014
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FIGURE 4. GDP BY SECTORS OF ECONOMY, 2011
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FIGURE 5. INFLATION AND EXCHANGE RATE, 2000-2011
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FIGURE 8. EXPORT AND IMPORT, 2002-2011
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FIGURE 6. INVESTMENTS BY COUNTRIES, 2011
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FIGURE 7. MAIN TRADE PARTNERS, 2011
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Total investment grew by 16.2% in 2011, with strong growth in the telecommunications, mining, food processing, IT and R&D, tourism, airport infrastructure, energy generation and distribution sectors. Foreign direct investment (FDI) fows to the Armenian economy mainly originated from Russia, EU member states and the U.S. Armenia’s exports are concentrated in base metals (copper, molybdenum, gold), cut diamonds, and food and beverages (canned and fresh food, brandy). The principal import commodities are natural gas, petroleum, tobacco products, foodstuffs, diamonds, machinery and equipment.
TABLE 1. MAIN MACROECONOMIC INDICATORS, 2008-2012
| 2008 | 2009 | 2010 | 2011 | 2012* | |
|---|---|---|---|---|---|
| GDP (USD billion) | 11.7 | 8.7 | 9.3 | 10.1 | 11.3 |
| GDP per capita (USD) | 3,606 | 2,666 | 2,844 | 3,102 | 3,454 |
| GDP real growth, % | 6.9 | -14.1 | 2.1 | 4,7 | 4.2 |
| Industry | 2.1 | -6.9 | 9.2 | 13.5 | 6.4 |
| Agriculture | 3.3 | 6.0 | -16.0 | 13.7 | 4.0 |
| Construction | 11.3 | -41.6 | 3.3 | -12.5 | 2.5 |
| Services | 4.8 | -3.3 | 4.1 | 5.0 | 4.1 |
| Inflation (year-end) | 5.2 | 6.5 | 9.4 | 4.7 | 4.1 |
| Budget balance (% of GDP) | -0.7 | -7.6 | -5.0 | -3.0 | -3.1 |
| Officially registered unemployment, % (year-end) | 6.3 | 7.0 | 7.0 | 6.2 | 6.2 |
| Investment (USD million) | 1,257.6 | 935.5 | 702.6 | 816.3 | - |
| incl. FDI (USD million) | 1,000.9 | 732.1 | 483.0 | 631.4 | - |
| Exports FOB (USD million) | 1,057.2 | 710.2 | 1,041.1 | 1,329.5 | 1,509 |
| Imports CIF (USD million) | 4,426.1 | 3,321.1 | 3,749.0 | 4,151.4 | 4,367 |
| Foreign Exchange Reserves (USD billion) | 1.41 | 2.00 | 1.87 | 1.96 | - |
| USD/AMD exchange rate (average) | 306.0 | 363.3 | 373.7 | 372.5 | - |
SOURCE: NSS, MOF RA
* Provided fgures are preliminary estimation done at the end of 2011. According to recent estimations the real growth of GDP is considered to be 7%.
Infrastructure
INFRASTRUCTURE
Armenia, traditionally a way station along the Great Silk Road, is located at the historic crossroads of Asia and Europe. The country is engaged in the construction of a number of large infrastructure projects to restore its importance as a commercial link between the continents.
RoADs
Armenia’s road network extends nearly 7,749 km as of 2011. The construction of the new North-South highway will enable safe and fast transportation of goods between the Persian Gulf countries and Europe. Upon its completion this road, about 556 km in length, will facilitate the traffc from Armenia's southern border to the Georgian border, and beyond to the ports of the Black Sea.
RAIlRoADs
The railroad network currently extends for about 707.4 km, with 69 operating train stations along the way. The modern railroad network is operated by Southern Caucasus Railway (a fully owned subsidiary of Russian Railways/RZD) under 30-year concession agreement. Railroad provides access to Black Sea ports, principally Batumi and Poti. A new rail link to Iran is in the planning stages.
SUBWAY
Yerevan’s Metro system is consists of a single line and a shuttle branch. There are ten stations and the system covers 12 km. Trains run every fve minutes from 6:30 am to 11 pm. The system is used by 60,000 passengers per day. The system runs north-south through underground stations and continues west and south on ground level to stations into the industrial suburbs. Plans are afoot to extend the Metro to Zvartnots International Airport.
Telephone seRVIce
Armenia’s telephone system is equipped for both landline and mobile service. There are more than 600,000 landline subscribers with country code 374. Three mobile operators function in the country: Beeline, VivaCell-MTS and Orange, which offer high-quality connections meeting international standards. Mobile subscribers in 2011 numbered 3.8 million.
InTeRneT
Reliable Internet service is available throughout the country. The Internet service had 380,000 subscribers in 2011. It is available via DSL, fber optic, WiMAX, and other technologies. Mobile operators provide quality Internet connections via 3G and 4G systems, which are available in all regions of the country. Armenia is connected with fber optic cables through Iran and Georgia. Currently the country has seven international portals fve in the North and two in the South, which makes the connection highly sustainable. Armenia’s Internet code is .am. For more information on transportation and communication in the country, please visit www.mtc.am.
RELIABLE INTERNET SERVICE IS AVAILABLE THROUGHOUT THE COUNTRY. THE INTERNET SERVICE HAD 380,000 SUBSCRIBERS IN 2011. IT IS AVAILABLE VIA DSL, FIBEROPTIC, WIMAX, AND OTHER TECHNOLOGIES. MOBILE OPERATORS PROVIDE QUALITY INTERNET CONNECTIONS VIA 3G AND 4G SYSTEMS, WHICH ARE AVAILABLE IN ALL REGIONS OF THE COUNTRY
MeDIA
Armenia has two public television networks and 36 privately-owned broadcast television stations with local and nationwide coverage. Public Radio of Armenia is a national, state-run broadcast network that operates alongside 20 privately-owned radio stations. Several major international broadcasts are also available to Armenians. For more information on public TV and radio please visit www.tvradio.am.
EneRgY InfRAsTRUcTURe
Armenia is amply supplied with gas, electricity and water. Gas subscribers number 625,000. The country has a nuclear power plant, two thermal power stations, and more than a hundred hydroelectric operations. Energy prices in Armenia are low and stable.
wATeR sUpplY AnD sAnITATIon
The water supply and sanitation system has been signifcantly upgraded. Numerous projects co-fnanced by international donor agencies are aimed at providing better access to safe, reliable and sustainable water supplies to both urban and rural communities.
AIRpoRTs
Armenia’s two principal airports are “Zvartnots” International Airport in Yerevan, and “Shirak” International Airport in Guymri, both operated by “Armenian International Airports” CJSC (AIA). Zvartnots International is the main gateway to Armenia. It is located 12 km from the center of the city. Both have been modernized extensively since 2002. At Zvartnots, covering 52,000 square meters, a new state-of-the-art passenger terminal has been built, new safety information and check-in systems installed, a new underground parking garage built accommodating more than 800 cars. Zvartnots International is considered the best airport in the South Caucasus, and AIA plans to make it a regional center. Total passenger traffc in 2011 was more than 1.5 million passengers. Currently, 34 international airlines fy direct connections between Yerevan and more than 60 large cities including Paris, London, Frankfurt, Vienna, Dubai, Munich, Amsterdam, Beirut, Istanbul, Moscow and Prague. Shirak International in Gyumri provides services to about 46,000 passengers annually, and features regular fights to Moscow, Rostov-on-don and Sochi. It was recently refurbished and is equipped with a state-of-the-art navigation system, new runways and lights, and other modern improvements.
“ZVARTNOTS” INTERNATIONAL AIRPORT IS CONSIDERED THE BEST AIRPORT IN SOUTH CAUCASUS
CURRENTLY, 34 INTERNATIONAL AIRLINES FLY DIRECT CONNECTIONS BETWEEN YEREVAN AND MORE THAN 60 LARGE CITIES
