Armenia was ranked first among CIS and CEE countries in GDP per-capita growth rates from 2000 to 2008. Growth slowed at the end of 2008, and actually declined in 2009, primarily due to the effects of the global economic crisis.
But in 2010-2011, the economy experienced renewed growth. The industrial structure of the economy has become more diversified in recent years as well: services and industry now make up 60 percent of GDP, versus 40 percent prior to the crisis. During the post-crisis period the industrial sector has demonstrated the highest growth rates (15.3%) compared to other sectors.
Inflation from 2000 to 2008 was relatively low (see Figure 5), but increased in 2010 because of higher food prices in international markets, and a decline in local agricultural production. Monetary tightening stabilized price levels in 2011.
Total investment grew by 16.2% in 2011, with strong growth in the telecommunications, mining, food processing, IT and R&D, tourism, airport infrastructure, energy generation and distribution sectors.
Foreign direct investment (FDI) flows to the Armenian economy mainly originated from Russia, EU member states and the U.S. Armenia’s exports are concentrated in base metals (copper, molybdenum, gold), cut diamonds, and food and beverages (canned and fresh food, brandy).
*Acknowledgement – this content is provided from Investment Guide Armenia 2013 upon approval. – Full report here