US diplomatic representation: chief of mission: Ambassador Harry J. GILMORE embassy: 18 Gen Bagramian, Yerevan mailing address: use embassy street address telephone: [7] (8852) 151-144, 524-661 FAX: [7] (8852) 151-138
Flag: three equal horizontal bands of red (top), blue, and gold
@Armenia:Economy
Overview: Under the old Soviet central planning system, Armenia had developed a more modern industrial sector, supplying machine building equipment, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy resources. Armenia is a large food importer and its mineral deposits (gold, bauxite) are small. The economic decline in recent years (1991-94) has been particularly severe due to the ongoing conflict over the ethnic Armenian-dominated region of Nagorno-Karabakh in Azerbaijan. Azerbaijan and Turkey have blockaded pipeline and railroad traffic to Armenia for its support of the Karabakh Armenians. This has left Armenia with chronic energy shortages because of a lack of capacity and frequent disruptions of natural gas deliveries through unstable Georgia, as well as difficulties in obtaining other types of fuel. In addition, bread is strictly rationed and there are shortages of other goods. In 1994, the economy seemed to bottom out. The government has managed to increase its financial and budgetary discipline, bringing inflation down from around 40% per month in first half 1994 to single digits in second half 1994 and the first quarter of 1995. A full economic recovery cannot be expected until the conflict is settled and the blockade lifted.
National product: GDP - purchasing power parity - $8.1 billion (1994 estimate as extrapolated from World Bank estimate for 1992)
National product real growth rate: -2% (1994 est.)
National product per capita: $2,290 (1994 est.)
Inflation rate (consumer prices): 27% per month average (1994 est.)
Unemployment rate: 6.5% of officially registered unemployed but large numbers of underemployed (1994 est.)
Budget: revenues: $NA expenditures: $NA, including capital expenditures of $NA