Under Soviet rule, the Armenian economy was transformed from agricultural to primarily industrial
Agriculture in Armenia faces many difficulties including scarcity of arable land
Industry in Armenia is heavily dependent on imports of energy and raw materials
Most of the population of Armenia experienced severe economic hardship during the 1990s
Reforms in Armenia
Substantial privatization of industry and agriculture, restructuring of the tax and financial systems, price liberalization
Mechanical engineering, machine tools, electrical power machinery, electronics, chemical, and mining industries are prominent in Armenia's heavy industry
The food industry in Armenia processes farm products for domestic demand and export, focusing on primary processing of grapes, production of brandy, wines, canned fruits, and vegetables
Light industry in Armenia specializes in the production of woolen, silk, and cotton fabrics, knitted goods, clothes, carpets, and footwear
The subsequent severe energy shortage combined with the disruption of key trade routes due to civil unrest in Georgia caused a sharp drop in industrial production, further devastating the economy
A new currency, the dram, was introduced in 1993, replacing the ruble
After independence, Armenia implemented structural reforms to create the institutional and legal basis for a market economy
Agriculture remains important in Armenia, accounting for about two-fifths of the gross domestic product and employing one-fifth of the labour force
The massive earthquake of 1988 destroyed nearly one-third of Armenia’s industrial capacity, seriously weakening the economy
Animal husbandry in Armenia
Beef and milk cattle, sheep, pigs, poultry, sericulture, apiculture
Cultivated lands in Armenia
Plowland, orchards, vineyards
Yerevan is the main industrial centre in Armenia, accounting for nearly three-fifths of the total industrial output
Nonferrous metallurgy in Armenia includes mining and dressing of copper, molybdenum, and other ores, smelting of copper, and extraction of precious and rare metals
Energy production in Armenia initially focused on utilizing the hydraulic potential of mountain streams for electricity production and irrigation works
The project made possible the electrification of agriculture and helped to build numerous industries
Hydroelectric power stations
Sevan-Hrazdan series
Armenia's sole nuclear power station near Yerevan was shut down following the 1988 earthquake
Air routes link Yerevan with Moscow, many Russian cities, and international cities including Athens, Paris, and Tehrān
Transportation
Mountainous terrain is a serious impediment to the construction of land transport routes
Pipelines link Armenia with Azerbaijani and Georgian gas fields
The rail link to Baku was closed in 1989
The constitution has been amended twice through referendum: once in 2005 and once in 2015
Road transport carries more freight than railways in Armenia
The head of state is the president, limited to one seven-year term
Trade
Armenia has a negative trade balance, importing more than it exports
The prime minister is the head of government and commander in chief of the armed forces
Government and society
Armenia adopted a new constitution in 1995, replacing the Soviet-era constitution
Armenia's imports
Coal
Petroleum products
Ferrous metals
Wood and paper products
Grain
Meat
Milk
Butter
Consumer goods
Local authority at the community level in Armenia is held by mayors or village elders
The Armenian National Movement governed Armenia from independence until 1998
Production of electricity
Combined with the building of irrigation works and water-supply systems for industries and cities
A railway line runs through northern, western, and southern regions of Armenia, linking to Tʿbilisi in the north and Baku in the east
Buses remain the chief mode of travel between towns and villages
The Azerbaijani pipeline was closed in 1989, and the Georgian pipeline has been subject to periodic disruption