Armenia Business

By | March 3, 2021

According to commit4fitness, Armenia is a country located in the South Caucasus region with a population of around 3 million people. The economy of Armenia is largely based on its agricultural sector, which accounts for around one-third of its GDP. Armenia also has a large industrial sector, with mining and manufacturing being the two main industries driving growth. In addition to these industries, Armenia has recently become an important hub for international trade and transit services due to its strategic location between Europe and Asia. Manufacturing is also growing due to foreign investment, with textiles, carpets, electronics and pharmaceuticals being some of the key industries driving growth. The country also has significant potential in terms of renewable energy sources such as solar and wind power which could be developed in the future.

According to Countryaah, since 1995, the economy has been oriented towards the processing of precious stones, the manufacture of jewelry and the development of tourism. This opened up loans from the IMF and the World Bank and from abroad. The international lending institutions now demand that the country reduce the government deficit, stabilize the currency and focus on agricultural development, food processing and transport and strengthen the health and education sector.

  • According to abbreviationfinder, AM is the 2 letter abbreviation for the country of Armenia.

Gross Domestic Product (GDP) of Armenia

By 92 votes to 1, the Armenian parliament abolished the death penalty in September 2003, thus ratifying the 6th protocol of the European Convention on Human Rights. For the Council of Europe, this was an important step forward. 41 of the Council’s 45 member states have so far ratified the protocol. President Kocharian changed the death penalty for 42 prisoners to life in prison.

In December 2003, 6 people were sentenced to life imprisonment for their participation in the armed attack on Parliament in 1999. MPs and Prime Minister Vazgen Sarkisia were killed.

In April 2004, several hundred supporters of the opposition parties in Yerevan demanded Kocharian’s departure on the grounds that he had manipulated the election results in 2003 to his advantage. Dissatisfaction was further exacerbated by the poor living conditions most of the population lives under. Political observers, however, stated that Kocharian is strongly opposed to the increasingly weak opposition. The president declared that the opposition should curb its demands so as not to aggravate the situation: “If the opposition tries to attract attention by blocking the road, then the police will have to take the necessary action.”

In late May, Foreign Ministers of Armenia and Azerbaijan met in Stirin, Czech Republic, to negotiate a peaceful settlement to the Nagorno Karabaj conflict. The meeting had been organized by Russia, France and the United States within the framework of the OSCE.

In June, the EU froze 100 million. US $ in aid to Armenia because the country still refused to give an exact date for the closure of the old Russian nuclear power plant. The Metsamor plant is located 40 km west of Yerevan, closed in 1988 and reopened in 95. It is located in one of the world’s most active seismic zones.

Hundreds of thousands of Armenians took to the streets in April 2005 to mark the 90th anniversary of the Ottoman Empire massacre of Armenians, and to demand that the world recognize that Armenians were the first victims of genocide in the 20th century. President Kocharian led the effort to recognize the massacre as a genocide, but Turkey stubbornly insists that the war alone was a fall. France, Russia, Poland and Germany met with 15 other countries to put pressure on Ankara to recognize the genocide. Armenia’s border with Turkey remains hermetically sealed, which is a major strain on its economic development.

Economic conditions

After the disappearance of the USSR, the Armenian economy suffers from the typical isolation of some internal states, accentuated by the position of extreme periphery towards the more developed countries and by the difficult geopolitical conditions deriving from the dispute with Azerbaijan, which make both transit rights on railways for outlets on the Caspian and energy supplies.

Agriculture still represents an important source of income and, despite the modest rainfall, manages to obtain a decent production of cotton and fruit and vegetables thanks to irrigation, along the Arasse river (which forms the border with Turkey and Iran). and near Lake Sevan. Here, however, irrigated crops are being downsized due to the progressive strong reduction, accentuated during the last decade of the 20th century, of the surface of the lake (also used for hydroelectric purposes). Beetroot, tobacco, cereals are also produced, and there are discrete vineyards, which among other things feed the distillation of a local and appreciated brandy. Away from the water, almost only sheep flocks can survive on the meager pastures.

The industry, which developed in Soviet times around the copper mines of Ailaverdi (northern Armenia), is currently largely privatized and represents the main sector of the Armenian economy; the textile and footwear sectors prevail, but metallurgical, mechanical, chemical, rubber and food productions are not negligible. These activities require a significant amount of energy which, for the most part, the Armenia obtains from the Russian Federation and other former Soviet countries.

Tourist activity, which could count on not indifferent archaeological, monumental and landscape attractions, is only in its infancy.