Economy of Armenia

Economy of Armenia
	Yerevan, the economic centre of Armenia
Currency	Armenian dram (AMD)
Fiscal year	Calendar year
Trade organisations	WTO, EAEU, CISFTA, BSEC
Country group	Developing/Emerging; Upper-middle income economy;
Statistics
Population	2.965 million (2025 est.)
GDP	$26.258 billion (nominal, 2025 est.); $74.294 billion (PPP, 2025 est.);
GDP rank	118th (nominal, 2025 est.); 111th (PPP, 2025 est.);
GDP growth	5.9% (2024 est.); 4.5% (2025f);
GDP per capita	$8,857 (nominal, 2025 est.); $25,060 (PPP, 2025 est.);
GDP per capita rank	83rd (nominal, 2025 est.); 78th (PPP, 2025 est.);
GDP by sector	agriculture: 16.7%; industry: 28.2%; services: 54.8%; IT: 8.25% (2023);
Inflation (CPI)	0.3% (2024 est.); 3.2% (2025f);
Population below poverty line	23.5% in poverty (2018); 44.1% on less than $5.50/day (2020f);
Gini coefficient	27.9 low (2022)
Human Development Index	0.811 very high (2023) (69th); 0.743 high (2023) (IHDI, 54th);
Corruption Perceptions Index	47 out of 100 points (2023, 62nd rank)
Labour force	1,380,405 (2019); 50.1% employment rate (2017);
Labour force by occupation	agriculture: 36.3%; industry: 17%; services: 46.7%; (2013 est.);
Unemployment	13.0% (2024 est.); 13.5% (2025f);
Average gross salary	AMD 251,822/ €641 / $690 monthly (February, 2023)
Average net salary	AMD 200,000 / €469 / $509 monthly (Q3, 2023)
Main industries	brandy, mining, diamond processing, metal-cutting machine tools, forging and pressing machines, electric motors, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry, software, food processing
External
Exports	$8.4 billion (2023)
Export goods	unwrought copper, pig iron, nonferrous metals, gold, diamonds, mineral products, foodstuffs, brandy, cigarettes, energy
Main export partners	European Union 25%; Russia 22%; Switzerland 20.4%; China 6.58%; Iraq 5.3%; Serbia 4.93%; Canada 2.52%; Iran 2.51% (2019) ;
Imports	$12.3 billion (2023)
Import goods	natural gas, petroleum, tobacco products, foodstuffs, diamonds, pharmaceuticals, cars
Main import partners	Russia 33.1%; European Union 17%; China 12.3%; Iran 6.59%; Turkey 5.04%; Georgia 4.13%; Ukraine 2.54%; India 1.93% (2020);
FDI stock	$4.169 billion (2015 est.); Abroad: $228 million (2015 est.);
Current account	−$328 million (2017 est.)
Gross external debt	$13.81 billion (2021)
Public finances
Government debt	48.4% of GDP (2024 est.)
Foreign reserves	$3.6 billion (December 2023)
Budget balance	−4.6% (of GDP) (2024 est.)
Revenues	7.4 billion (2025 est.)
Expenses	9 billion (2025 est.)
Credit rating	Moody's: Ba3, Outlook Stable (27 Aug 2019); Fitch: B+, Outlook Positive (03 Mar 2022)
	All values, unless otherwise stated, are in US dollars.

The economy of Armenia grew by 5.9% in 2024, according to estimates by the International Monetary Fund, with total output amounting to $25.5 billion. GDP contracted sharply in 2020 by 7.1%, mainly due to the COVID-19 recession and the Second Nagorno-Karabakh War with Azerbaijan. In contrast it grew by 7.6% in 2019, 5.8% in 2021, 12.6% in 2022 and 8.3% in 2023. Between 2012 and 2018 GDP grew 40.7%, and key banking indicators like assets and credit exposures almost doubled.

While part of the Soviet Union, the economy of Armenia was based largely on manufacturing industry—chemicals, electronic products, machinery, processed food, synthetic rubber and textiles; it was highly dependent on outside resources. Armenian mines produce copper, zinc, gold and lead. The vast majority of energy is produced with imported fuel from Russia, including gas and nuclear fuel for Armenia's Metsamor nuclear power plant. The main domestic energy source is hydroelectric. Small amounts of coal, gas, and petroleum have not yet been developed.

The severe trade imbalance has been somewhat offset by international aid and remittances from Armenians abroad, and foreign direct investment. Armenia is a member of the Eurasian Economic Union and ties with Russia remain close, especially in the energy sector.