Armenia today has the economy which is growing and developing. Area disagreement holds up economic growth. In addition, Armenia has no access to sea ports difficult because the border with Turkey is closed. In 2010, it was confirmed that Turkey will keep the border closed for the predictable future after the Turkey-Armenia normalization progression collapsed.
However, Armenia turned out to be a member of the WTO (World Trade Organization).
The nation is making substantial progress in privatizing possession of what used to be State Owned industries under the former Soviet system.
Armenia’s economy suffered especially after the great impact that the 1988 earthquake brought. Armenia today is still largely dependent upon international donors and Diaspora Armenian groups, which donating aid is used for the development of the affected regions.
It should be also added that after a massive 14.4 % decline in 2009, the economy appeared to modestly improving in the first 2 quarters of 2010, recording 5.4 and 7.6% real GDP growth on an annual basis. The GDP went up by 2.8 % in the period January to September 2010 compared to the same period in 2009; on the face of it, seems to point out that the worst of the crisis may finish.
Armenia today has exports remained resource-dependent, mainly because the non-resource-intensive sectors were considerably less aggressive. There was a 43.9 % increase in general exports during the January to September period.
During 2003-2007, the AMD valued sharply against the U.S. dollar by around 45%, mainly due to important increase in discharges, growth of exports in complete terms, the de-dollarization of the economy, and weakening of the dollar in international markets.
Today Armenia is greatly dependent on import of energy fuel, generally from Russia. The Armenia Nuclear Power Plant (ANPP) at Metsamor supplies around 40% of electricity production for the nation, and hydro and thermal stations provide approximately 30% each.
Armenia today imports most of its natural gas from Russia, which provided major reductions to Armenia until 2009. The Russian import gas price rose from $110 to $154 per thousand cubic meters in April 2009, and increased further to $180 in April 2010.
Today Georgia is the main way of importing nearly all of Armenian refined petroleum products. The result of the recent conflict between Russia and Georgia was in periodic disruptions of fuel and food imports, and highlighted Armenia’s susceptibility to this solitary transit corridor.
Armenia has deal with to decrease poverty, overcome inflation, steady its currency, and privatize most small and medium sized projects.