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Armenia Business Report
General information
Source: The World Factbook - Central Intelligence Agency
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)
105/180Very 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/AArmenia 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.
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