Armenian traders
Armenia, a small, landlocked country in the South Caucasus, has a growing economy that is largely focused on trade, services, and agriculture. Its economy is heavily reliant on imports since the country lacks significant natural resources and industrial output. Armenia imports a wide range of goods, including machinery, vehicles, fuel, pharmaceuticals, and consumer goods. Key import partners include Russia, China, Germany, and Iran. On the other hand, Armenia's major exports include minerals such as copper and molybdenum, agricultural products like wine, brandy, and dried fruits, as well as textiles and jewelry. Russia, the European Union, and China are among its main export destinations.
Armenia has established growing trade ties with Middle Eastern countries, especially Iran and the United Arab Emirates. Iran is a critical partner for Armenia due to its geographical proximity and shared borders, providing Armenia with vital energy resources and trade opportunities. The relationship with the UAE has also strengthened in recent years, particularly in areas such as jewelry, precious metals, and tourism. These ties are crucial for Armenia, given its landlocked position and strained relations with neighboring Turkey and Azerbaijan, which complicate regional trade.
The country’s banking and financial system has evolved significantly since its independence in 1991. The Central Bank of Armenia regulates the sector, ensuring financial stability and promoting economic growth. Armenia has a well-developed banking sector, with several commercial banks providing a wide range of services to individuals and businesses. The financial system is relatively open to foreign investments, and digital banking services are on the rise. However, Armenia's economy faces challenges, including a reliance on remittances from its large diaspora, particularly in Russia, and vulnerabilities from global economic shifts. Despite these challenges, the government continues to implement reforms to stabilize the financial system, attract foreign direct investments, and modernize its economy.