Armenia ranked 125th in the world in terms of GDP

Armenpress News Agency, Armenia
 Friday



Armenia ranked 125th in the world in terms of GDP



YEREVAN, JULY 14, ARMENPRESS. Last year Armenia’s GDP amounted to 10.8
billion USD and currently it is ranked 125th in the world, according
to the National Competitiveness Report of Armenia 2017, reports
Armenpress.

According to the report Armenia’s share of economic value in the world
doesn’t increase, however, the quality of increase is being improved.

“In the post-crisis period, Armenia’s GDP entered a recovery phase,
growing by a modest 3.5% per annum on average for the period of
2010-2016. Improved economic diversification and the augmentation of
the size of the tradable and export-oriented sectors were the main
growth engines. The decline of 2015 (in terms of USD) was
significantly conditioned by the devaluation of the Armenian dram
(over 30%) and the economic decline of Russia — Armenia’s largest
trade partner and major source of private monetary transfers. These
factors slowed down the speed of economic recovery”, the report said.

The report says as of 2016, Armenia’s GDP stood at around 10.5 billion
USD, and its rank fell to its 2007 position in the world.

The second half of the 2000s demonstrated the contrasting performance
of Armenia globally in terms of GDP and exports. Armenia experienced
overall GDP growth that was higher on average than in other countries
worldwide. However, a modest increase in exports due to predominantly
non-tradable sector growth in Armenia reduced the country’s
contribution to global exports.

“The aftermath of the global economic crisis demonstrated the Armenian
economy’s vulnerability to external shocks fed by unsustainable growth
drivers of non exportable segments (infrastructure, construction),
narrow and resource-led exports, and overdependence on private
monetary transfers. The sizeable decline of the economy coupled with a
large decline in foreign remittances accentuated the need to seek new
growth drivers and financing channels. The significance of economic
diversification and the dire need for a new economic growth model
influence Armenia’s economic policy”, the report said.