Sector Overview of Armenian Economy
A. FOOD PROCESSING
Agriculture is a major sector for the Armenian economy, accounting for 18% of the country’s GDP for the years 2006-2010. Armenia has a fast growing food processing sector with excellent export potential based on ecologically-friendly “green” agro-products. As one of the country’s most developed sectors, and the second in terms of export volumes (14% of the total), food processing plays an important role in the economy. The most important products are canned food production, and alcoholic beverage production, especially wine and brandy made from locally grown grapes.Armenia’s principal food processing exports are alcoholic beverages, fsh, cheese, canned fruits, jams, coffee, and mineral water. Some exporters also ship frozen fruits and vegetables. Armenia’s soil and climate conditions, high altitude, and limited use of chemical fertilizers account for favorful produce. This produce can be successfully introduced to international markets with modern processing and packaging technologies that currently used to export such Armenian products as soft drinks, mineral water, cigarettes, alcohol, canned fruits and vegetables, milk and dairy products, meat and meat products, and mixed feed.
B. MINING AND QUARRYING
The subsurface of Armenia is rich in certain mineral resources. More than 480 deposits of a range of mineral resources have been discovered here. Mining is a key contributor to the Armenian economy and is one of the fastest growing exporting sectors in recent years, with ores and metals accounting for over half of the country's exports. Armenia has rich deposits of iron, copper, molybdenum, lead, zinc, gold, silver, aluminum, and nepheline syenite.Currently there are seven copper-molybdenum mines, three copper mines, thirteen gold and gold-polymetalic mines, two polymetalic mines and two iron-ore mines operating in Armenia.Environmental safety is among the key challenges for the sector. In view of this, the state will give preference to the use of most up-to-date and safe technologies when approving the mine development programs. For more information visit the following link: http://www.minenergy.am/
Energy is one of Armenia’s most fully operational and cost-effective sectors, and the country is nearly self-sufficient in energy. There is an independent energy regulator for the electricity, natural gas and heating sectors, and significant progress has been made in streamlining the licensing process, eliminating cross-subsidies and establishing cost-effective pricing and tariff structures. Lacking industrial fuel resources, Armenia places a high emphasis on development of its own renewable energy sources, such as hydro, wind and solar energy. For more information visit the following link: http://www.minenergy.am/
D. INFORMATION TECHNOLOGY/TELECOMMUNICATIONS
he information technology (IT) and telecommunications sector is one of the most productive in Armenia. The Government has declared IT a priority and is supporting it through various institutions, such as the IT Development and Support Council, chaired by the Prime Minister, and the Enterprise Incubator Foundation. Armenia’s IT and telecommunications industry has already attracted global brands such as Synopsis, which has located a considerable part of their operations in Armenia, Microsoft, National Instruments, Mentor Graphics, Ericson, and Orange. Currently, there are more than 300 IT and telecom companies in Armenia.
Thanks to its tradition of producing high quality chemical products, over the last decade Armenia's pharmaceuticals industry has grown into one of the most dynamic sectors of the economy. Exports account for 57% of output, and average annual export growth has been 24% from 2003. Such growth is based on a skilled and highly educated workforce, enthusiastic and effective entrepreneurs, and signifcant domestic and foreign direct investment.
Tourism is one of the most dynamic sectors of the economy. With its rich historical, cultural and natural resources, Armenia has the potential to offer attractive and competitive tourism products and high-quality services. The number of tourist visits to the country has grown annually by 25% in recent years. In 2011, the number of tourist visits was around 800,000.Armenia’s tourism policy objectives area are established by the law of the Republic of Armenia “On Tourism and Touristic Activities” and the Tourism Development Plan.