Armenia is a landlocked country located in the South Caucasus region of Eurasia. Turkey to the west, Georgia to the north, Azerbaijan to the east, and Iran to the south. The country's geography plays a crucial role in shaping its political and economic interactions with its neighbors. Being landlocked limits Armenia's access to seaports, making it heavily dependent on its neighbors for trade routes and transportation.

The political relationships between Armenia and its neighbors have been complex and influenced by a range of factors, including historical conflicts, territorial disputes, and geopolitical interests. Armenia and Turkey share a complicated history, primarily due to the Armenian Genocide in the early 20th century, which resulted in the deaths of a large number of Armenians. The issue of recognizing the Armenian Genocide has been a contentious point between the two countries. Diplomatic relations between Armenia and Turkey have been strained, and the border between the two countries has been closed since 1993.

What are the geography, politics and neighbors of Armenia?, Read More ...

Armenia's GDP is classified as an emerging market economy. In 2020, Armenia's GDP was approximately $13.6 billion, according to the International Monetary Fund (IMF). The GDP per capita was around $4,500, indicating a relatively lower income level compared to many developed nations. Armenia has a diverse economic base, with industries and services contributing significantly to its GDP. Key industries in Armenia include mining (particularly copper and molybdenum production), manufacturing (textiles, chemicals, machinery), food processing, and construction. The mining sector plays a vital role in Armenia's economy, with significant mineral resources being extracted.

The services sector is an important driver of Armenia's economy, accounting for a significant portion of its GDP. Key areas within the services sector include tourism, information technology (IT) and software development, financial services, and telecommunications. Agriculture remains an important sector in Armenia, although its contribution to the overall GDP has decreased over the years. Key agricultural products include fruits, vegetables, grains, dairy products, and livestock. Agriculture is primarily carried out on small-scale family farms. Taxation is an essential source of revenue for the Armenian government. Taxes are levied on income, corporate profits, value-added goods and services, and property. The government also relies on other domestic revenue sources, such as fees and licenses.

Economy and financial resources and income of Armenia, Read More ...

Armenia is known for its mineral resources, particularly copper and molybdenum. These metals constitute a significant portion of Armenia's exports. Other mined resources include gold, silver, and zinc. Armenia exports agricultural products such as fruits (apricots, grapes, pomegranates), vegetables, nuts (especially hazelnuts), dairy products, and processed food items. The textile industry in Armenia produces and exports clothing, knitwear, and accessories. Armenia has a growing jewelry sector, with exports of gold and silver jewelry, gemstones, and precious metals.

The latest data from the World Trade Organization (WTO) in 2018, which shows the largest volume of ‎Armenian exports to different countries.‎ In addition to Russia‎, Armenia's most important trading partners in terms of exports are Switzerland ‎‎(14.16%), Bulgaria (9.10%), Iraq (6.32%), the Netherlands (5.55%), China (4.50%) and Iran‎‏ ‏‎(3.95%), ‎respectively‏.‏ Some of these countries, including Russia‎ and China, also play a significant role in exports to Armenia, ‎which indicates their trade relations with each other.‎ Armenia engages in international trade to import goods it lacks domestically and export its products to generate revenue.  Armenia has traditionally experienced a trade deficit, meaning its imports exceed its exports. This trade imbalance necessitates the reliance on remittances, foreign aid, and investment to bridge the gap.

Trade statistics of Armenia, Read More ...

Russia is Armenia's primary trading partner and a major source of imports. As members of the Eurasian Economic Union (EAEU), Armenia benefits from preferential trade agreements with Russia. Armenia imports a significant amount of natural gas, petroleum products, machinery, vehicles, and various consumer goods from Russia. China has become an increasingly important trading partner for Armenia in recent years. Armenia imports a wide range of products from China, including machinery, electronics, textiles, consumer goods, and raw materials. Chinese imports often cater to the needs of Armenia's manufacturing, construction, and retail sectors.

Armenia has trade relations with various EU member states. The EU is a significant source of imports for Armenia, providing a wide range of products such as machinery, vehicles, chemicals, and consumer goods. Germany, Italy, France, and the Netherlands are among the EU countries from which Armenia imports goods. Armenia also imports goods from other countries, including Ukraine, Belarus, South Korea, Japan, and India. These imports encompass a variety of products depending on the specific needs and trade agreements with these countries.

Which countries are Armenia's main partners in importing goods?, Read More ...

Russia is Armenia's primary trading partner and a major source of imports. As members of the Eurasian Economic Union (EAEU), Armenia benefits from preferential trade agreements with Russia. Armenia imports a significant amount of natural gas, petroleum products, machinery, vehicles, and various consumer goods from Russia. China has become an increasingly important trading partner for Armenia in recent years. Armenia imports a wide range of products from China, including machinery, electronics, textiles, consumer goods, and raw materials. Chinese imports often cater to the needs of Armenia's manufacturing, construction, and retail sectors.

Despite the political tensions between Armenia and Turkey, they still engage in some trade relations. Turkey is a significant source of imports for Armenia, particularly in terms of construction materials, textiles, food products, and consumer goods. However, the trade volume between the two countries is relatively lower compared to other partners. The United States is another important trading partner for Armenia in terms of imports. Armenia imports machinery, equipment, technology, pharmaceuticals, and consumer goods from the United States. The bilateral trade relationship between Armenia and the United States has been growing, with a focus on technology and innovation.

Culture and progress of the Armenian people, Read More ...

Armenia's economy is relatively small in terms of GDP compared to global economic powerhouses. According to the International Monetary Fund (IMF), Armenia's GDP in 2020 was approximately $13.6 billion, placing it among the lower-middle-income countries. The size of the economy influences Armenia's global economic influence and bargaining power in international trade negotiations. Armenia has been working to expand its trade relations and boost exports. However, the country's export base remains relatively narrow, with a heavy reliance on a few key sectors such as mining, agriculture, and textiles. Diversifying the export portfolio and expanding into higher value-added industries could enhance Armenia's global trade position.

Armenia has taken steps to improveits investment climate and attract foreign direct investment (FDI). The government has implemented reforms to simplify regulations, promote transparency, and provide incentives for investment. While FDI inflows have increased in recent years, Armenia's global position in attracting substantial foreign investments is still developing compared to more prominent global investment destinations. Armenia is a member of several regional organizations that promote economic cooperation and integration. It is a member of the Eurasian Economic Union (EAEU), which includes countries like Russia, Belarus, Kazakhstan, and Kyrgyzstan. The EAEU provides Armenia with access to a larger market and preferential trade agreements with member states. Additionally, Armenia has signed a Comprehensive and Enhanced Partnership Agreement with the European Union (EU), aiming to deepen political and economic ties.

World ranking in all fields of Armenia, Read More ...