GDP, current US$ billion
GDP per capita, current US$
Poverty Rate (US$5.50/day 2011PPP terms) (2016)
Life Expectancy at birth, years (2015)
Following an initial spike in early 2018, Armenia’s economic performance slowed during the rest of the year, mostly due to weakening external conditions, the lower execution of public capital expenditures, and slowing investment. Still, the economy expanded at a robust 5.2 percent for the year. Although larger economic disturbances were avoided during the political transition after the December 2018 parliamentary elections, the associated uncertainty may have weighed on economic sentiments.
Inflationary pressures remained low at 2.5 percent, just on the lower band of the Central Bank’s inflation target range. The external balances deteriorated as growing exports - particularly textiles, tourism, and IT services - were insufficient to offset strong import growth, weaker mining export earnings, and flattening remittances. The overperformance of the fiscal accounts reflected strong revenue collection, sound control over current spending, and an underperformance in capital expenditure.
Two consecutive years of solid growth and low inflation contributed to an improvement in living conditions. The national poverty rate declined from 29.4 percent in 2016 to 25.7 percent in 2017. The economic growth in 2017 translated into higher consumption levels for those at the bottom 40 percent of the distribution, breaking the pattern observed in 2011-2016, when growth largely benefited the upper deciles only.
Last Updated: Apr 10, 2019