North America

Central & South America

Europe

Africa

Asia & Middle East

Southeast Asia & Oceania

map

Armenia Business Report

General information
Source: The World Factbook - Central Intelligence Agency
flag
Population
3,038,217 (July 2018 est.)
GDP (PPP)
$28.34 billion (2017 est.)

Under the old Soviet central planning system, Armenia developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics, in exchange for raw materials and energy. Armenia has since switched to small-scale agriculture and away from the large agro industrial complexes of the Soviet era.

GDP growth rate
7.5% (2017 est.)

High but uneven. Armenia's geographic isolation, a narrow export base, and pervasive monopolies in important business sectors have made it particularly vulnerable to volatility in the global commodity markets and the economic challenges in Russia. Armenia is particularly dependent on Russian commercial and governmental support, as most key Armenian infrastructure is Russian-owned and/or managed, especially in the energy sector.

GDP (PPP) per capita
$9,500 (2017 est.)

Remittances from expatriates working in Russia are equivalent to about 12-14% of GDP.

Local currency
Armenian dram (AMD)

Quite stable currency with fluctuations downward and upward of about 10%.

Financial stability (Public debt)
53.5% of GDP (2017 est.)

Armenia’s rising public debt is leading the government to tighten its fiscal policies – the amount is approaching the debt to GDP ratio threshold set by national legislation.

Inflation
0.9% (2017 est.)

Low.

Language
Armenian (official) 97.9%

Only 4% of the population is proficient in English, though this percentage rise to 40% for a basic knowledge of the language.

Corruption perception index (Source: Transparency International)
105/180

Very high level of corruption.

Duties and tax
Source: PwC World Tax Summaries 2017-2018
VAT
20%
Armenia’s current VAT law is based loosely on the principles of the European Union (EU) VAT Directive.
Corporate Tax
20%
Individual entrepreneurs and legal entities engaged in certain activities should make licence payments, which replace CIT and/or VAT.
Duties
N/A
Armenia is a member of the Eurasian Economic Union (EEU) along with Russia, Kazakhstan, Kyrgyzstan, and Belarus. The customs value will be the price actually paid or payable for the goods when sold for export to Armenia.

Are you interested in doing business South Caucasus?

Check out our Explore Opportunities page and find partners for your Armenia business. On Globartis, you can find hundreds of business opportunities from Caucasus Companies, such as Armenia import-export, and also to invest in Armenia.

Connect with Armenian companies on Globartis, and find importers in Yerevan, the capital and economic center of Armenia. Join now for free and start doing business in Armenia.

Copyright © Globartis 2021 - Version 3.1.7 - Last update 06-jun-21 - Powered with by  Giplo