Armenia continues to face critical economic challenges despite significant progress in macro-economic and structural reforms. The country’s economic growth as measured by gross domestic product (GDP) has been strong, however, export competitiveness, employment, gross national income (GNI) per capita, and energy security are all lower than the regional norm. Many aspects of economic development which are necessary for ensuring the sustainability of economic growth, such as the business enabling environment, private sector capacity, the creation of productive employment opportunities and poverty reduction, have not adequately progressed.
Years of double-digit GDP growth were narrowly based and resulted in an uneven and unequal distribution of wealth rather than real improvement in living standards for the majority of the population. Widening disparities in wealth and income have also led to a serious socioeconomic divide on several levels, most notably between rural and urban areas. In the long run, Armenia’s most critical needs are to diversify its economy and improve its ability to compete internationally. The most critical constraint to sustained growth is the concentration of economic and political power, which the USAID program is designed to address.
Last updated: January 26, 2015