Armenian economy of the newly built Republic of Armenia has not always been stable and emerging. It has faced lot of collapses and hardships after the USSR period.
When a country goes through political, humanitarian, environmental, or any other changes, that directly effects the country’s economy.
Cases become harder when these political changes are in a form of collapse and are accompanied by a war and blockade.
These things, of course create obstacles for economic growth and faster development. But it doesn’t mean the growth is not possible at all. It just takes baby steps. One step at a time!
The image of Armenian economy varied a lot before gaining independence and after it (1991).
It was rather hard indeed to build a completely new economy based exceptionally on own resources of the country.
Even though, coping with all those difficulties, Armenia continues to develop and explor best of his economic perspectives.
Collapse of the Soviet Union: The End for Armenian Economy?
In 1994, when Armenia declared its independence after the Soviet Union was dissolved, the situation of the country was not one could desire of.
During the Soviet period, Armenia like other countries of Soviet Union was an industry-based country specialized mainly on machinery and electronics production. However, this system couldn’t continue working the without the whole integrating Soviet economy.
The economies of all countries were interconnected with each other, and one couldn’t have long life without another. This brought Armenian economy in a terrible situation.
How is Armenian Economy Developing Today?
The economy of Armenia is on its way of development nowadays. The situation is quite different comparing with previous years. To be honest, Armenia has not a huge potential of natural resources as it’s is a small landlocked country.
However, Armenia has a huge potential of human resources, which is the main privilege of Armenian economy.
Today Armenia is mainly developing on three head components of economy:
- IT industry
Mining Industry in Armenian Economy
The main sector of Armenian economy is mining industry. Armenia is a large producer of molybdenum. The copper-molybdenum reserves of Armenia are concentrated in Karajan deposit.
Though the overwhelming part of mining industry belongs to molybdenum, Armenia has also significant deposits of copper and gold. Mining industry has also its negative impact.
According to various ecological studies mining industry brings great harm to Armenia’s nature as the dangerous contaminants and poisons are easily absorbed by the ground.
The negative impact of pollution is vividly seen especially for the habitants near those factories.
Agriculture in Armenian Economy
Armenian climate and fertile soil has created extremely favorable conditions for the development of agriculture. It’s difficult to imagine economy of Armenia without agriculture as the testiest fruits and vegetables are grown exactly here!
44% of all lands are agricultural lands. While traveling out of the city you’ll meet agricultural areas of melons, watermelons, potatoes, wheat, grapes, oil plants, tobacco and various fruits very often.
Armenia has also huge production of meat and dairy. Though the perspectives of agriculture are extremely high, there is a huge amount of Armenian lands which are favorable for cultivation, but remain abandoned. The reason is lack of financial resources.
IT industry: The Future of Armenia in Silicon Valley
IT industry is the most innovative and the coolest sector of Armenian Economy! At the moment, Information Technology companies remain the fastest-growing ones in Armenia.
Armenian IT resource is also highly appreciated by other countries as well, so they are actively collaborating with various international high ranking companies.
According to the forecasts of some experts Information Technologies will bring 1 billion income a year already by 2019. One of the world’s hi-tech giants Synopsis Company, a global microchip design leader has 700 Armenian employees in the country.
There are quite a lot of other internationally known companies which are engaged in using Armenian human resources such as VMwave, Mentor Graphics, National Instruments etc.
The IT sector in Armenia boosts thanks to number of startups held by Armenians including Pics Art one of the most popular photo-editing app. Armenian IT sector is emerging day by day.
So, be ready, Armenian are about to occupy Silicon Valley!
TUMO Center for Creative Technologies
Of course, it would be unfair to talk about IT section of Armenia without mentioning the huge input of Tumo center for creative technologies.
Tumo is a digital media learning center in Armenia. The center hosts thousands of teenagers which come there to learn and explore the intersection of technology and art.
The students of the center choose their learning program according to their preferences. The center is focused on following areas:
- Game development
- Web development
- Digital media
The center is in line with all international standards with latest digital tools. Besides giving fundamental knowledge to Armenian teenagers for free, the center also has a huge impact on them.
Thanks to the professional staff and delicate teamwork students get motivated and fully engaged in the learning program. The center also helps them easily determine about their future profession.
Аrmphones: Yes Armenians Produce Smartphones!
Armphones are one of the latest achievements in Armenian economy’s IT sector. The experienced professionals of IT finally started producing Armphones, the first Armenian smartphones.
Armphones are rather functional and can freely compete with other international brands. The prices of Armphones are also rather convenient. There are also Armtabes in the market.
Tourism is Another Leading Role in Armenian Economy
The rich cultural heritage of Armenia makes this country a unique emerging place for tourism. One of the most visited places in Armenia are ancient pagan Temple Garni, Tatev Monastery, Monasteries Haghpat and Sanahin and quite a lot of other places.
By the way, the longest Cable car on the earth is situated in Tatev. Thousands of tourists visit Tatev to have a tour on the longest cable car on the Earth and enjoy the unique nature of Armenia at the same time.
The project of wing of Tatev was one of the most successful projects and plays a considerable role in Armenian economy.
Armenian Brandy is a Special Highlight in Armenian Economy
There are several things which create the image of Armenia. Armenian brandy is one of them. Armenia is a large brandy producer which is known throughout the world.
Armenian brandy is one of the most respectable alcoholic drinks. The demand of Armenian brandy is very high and it’s actively exported abroad.
Those who know about booze, don’t need a further explanation!
Giant Companies in a Small Country: Good or Bad for the Armenian Economy?
There are some giant companies in Armenia that greatly impact on Armenian economy. They are specialized on production and import of several products. Companies like this have both their positive and negative impact on Armenian economy.
The positive point is that the companies provide the country with a great number of workplaces. The negative point is that sometimes these companies prevent the development of small and medium enterprises. This situation in Armenia is rather problematic and sometimes it is even associated with economical monopoly.
Textile Industry is Back Again
Armenia used to be specialized in textile industry. However, after the full collapse of the Soviet Union, economy textile industry faded in Armenia.
Nowadays textile industry is on its way of emerging day by day. Though it’s not the leading sector of economy, clothing, knitting and textile processing is reaching on a high level in Armenia.
Today the label “made in Armenia” gradually becomes one of the must things for Armenians while buying clothes and shoes.
Other Related Posts of Armenian Economy and Its Features You Should Understand
- Armenian President Introduction | The Leaders of Armenia
- Armenian Prime Ministers, the most Powerful Figures of Armenian Politics & Government
- Armenia Natural Resources Found in Armenia that Are Important!
- Armenian Flag Compilation | Colors, Meaning & History, All about the Flag of Armenia