Economy

While sustainable development has become a hot topic in developed countries, it is also an essential issue for developing ones, including Armenia. While the country faces significant challenges, it also has many opportunities.

Despite uncertainty stemming from security concerns, Armenia’s real estate market continues to experience growth with record-breaking transactions, and excessive prices, especially in the rental market.

While the EU is one of Armenia’s largest trading partners, exports from Armenia remain relatively low. This trade deficit can present an opportunity for Armenian exporters to expand their presence in the European market and increase their export volume.

Armenia's alcoholic beverage industry is a prominent sector in the country’s economy. Production and trade data for brandy, wine and beer showcase a dynamic pattern of growth. Hovhannes Nazaretyan explains.

Armenia’s Statistical Committee recently published its annual report on a variety of socio-economic metrics. Driven by the effects of the Russo-Ukrainian war, Armenia saw robust economic growth, dramatic upturn in international trade, IT, and banking.

Residents of Yerevan will no longer be able to take advantage of an income tax refund system for mortgages that allowed middle-class families to purchase homes. The Government justified the move in order to boost construction in the regions.

Armenia's state debt is approaching $10 billion US, but to what extent is it manageable, and what risks does it have? Seda Ghukasyan explains.

The Armenian dram has been rapidly appreciating against the U.S. dollar for months, creating problems for local businessmen and entrepreneurs.

Navigating through the complexity of the triangular dimension of identity, trust and engagement infrastructure is the key to diaspora networks, their connection with the home country, and economic development.

Following Russia’s invasion of Ukraine, several Russian financial institutions were disconnected from SWIFT. Justin Tomczyk explains what SWIFT is and how blocking Russia from accessing it could impact the Armenian economy.

In 2021, Armenia’s parliament legalized the production and processing of industrial hemp. To date, six companies registered in the country have received licenses to begin production.

Electricity prices for middle-class families increased for the first time since the 2015 Electric Yerevan protests. Water prices increased for the first time since 2017. As in other countries, life is getting more expensive in Armenia.

Turkey is Georgia’s main source of imports and finances strategic infrastructure such as energy projects. The imbalanced arrangement provided Turkey with “strategic depth” and opportunities for power projection. Armenians are apprehensive about the repercussions of going in the same direction.

With the proliferation of online gambling, Armenia’s government sets further restrictions on gambling ads to protect the interests of consumers. But is it effective?

Will the 2022 state budget be able to solve or alleviate the socio-economic and security problems Armenia is facing?

The Eurasian Economic Union’s common natural gas market is expected to be launched in 2025. If the deal goes through, could Armenia as a natural gas importing country benefit?

While there have been some positive developments in the Armenian dairy industry, its further development is being hampered by a number of factors. Economist Suren Parsyan explains.

The high level of centralization in Armenia’s sugar market has been maintained, allowing the main sugar importer, producer, wholesaler and retailer to leverage its market power into an arbitrary pricing policy.

A new tax hike on copper concentrate, molybdenum concentrate and ferromolybdenum places a burden on a sector that is critical to Armenia’s balance of payments and was implemented with an unwelcome urgency reducing regulatory certainty for potential investors.

The IT sector in Armenia is a strategic direction for the development of the country thanks to the relatively high level of scientific and educational potential of the population, and also one of the highest paid sectors.

Armenia and China share a rich history in which mercantilist Armenians played a noteworthy role in the exchange of goods along the Silk Road. Although the Armenian state today is vastly different from a millennium ago, that industrious character remains in the Armenian spirit.

Compared to other markets in the Armenian economy, the telecommunications and communications market is highly competitive. Economist Suren Parsyan breaks it down.

How an AI-powered platform that analyzes thousands of online job postings from a wide variety of commercial websites to provide insights into the labor market can make data-driven decisions come to life.

COVID-19 and the 2020 Artsakh War impacted Armenia-EU trade and economic relations and not only. Moving forward, Armenia must balance opportunities and risks in two directions of integration - CEPA and as a member of the Eurasian Economic Union.

On the path to becoming a serious player in the global tech sector, Armenia needs to foster an environment that allows technology companies to achieve their business goals, which includes legal institutions to resolve complex disputes.

One of the drivers for the Velvet Revolution was the desire for improved socioeconomic conditions. Liana Avetisyan looks at what is changing in distributive justice and whether public perceptions are reflected in these changes.

There are a number of obstacles and barriers within the internal market of the EAEU. If solved quickly and effectively, it can create opportunities for mutual trade to grow, making it a productive vehicle for regional integration.

Economist Suren Parsyan writes that due to the pandemic and the post-war situation, Armenia is witnessing a decline in purchasing power, a phenomenon that is having an impact on the real estate market.

Although the principle of equal pay for equal work for men and women is fully implemented in Armenia’s Labor Code, a gender pay gap persists. Lara Techekirian looks at the challenges, the government’s response and presents a set of recommendations.

It is widely believed that electric vehicles will transform human mobility and energy usage patterns. Could Armenia become a hub of innovation for electric mobility?

Late last year, Armenia’s national postal carrier announced an increase in prices for international shipments. Small businesses have been hit hard.

Armenia’s parliament recently approved property tax increases that led to a wave of debate and blowback. Astghik Karapetyan explains how the reform is being implemented.

When a State of Emergency was declared in Armenia because of the COVID-19 pandemic, many people lost their jobs. Many of them were unregistered workers and today have found themselves more vulnerable than ever.

Armenian banks offer 9% interest on a one-year term deposit. Harout Manougian explains what you need to know before opening an account.

The nature of the strategic importance of oil and gas is changing. As energy policies adapt, Armenia will face a new global reality. Will it be ready for it?

Tatev Mkrtumyan looks at five startups from the Armenian tech scene that are making a splash in four main industries that are growing during the pandemic.

What will change after the global COVID-19 pandemic and how can Armenia position itself to come out of the crisis in a stronger position? Samson Avetian breaks down the economic landscape.

Armenia’s advancement in the tech and innovation space is only in its infancy. In order to take the next step, domestic financial markets need to be well-aligned and sophisticated enough to provide the best possible support and take Armenian entrepreneurship and innovation to the next level.

Striving for gender equality in the labor market is essential to maximizing Armenia’s economic potential.

Armenia’s minimum wage is set to increase in 2020. When setting the minimum wage, governments need to take a balanced and evidence-based approach that considers the needs of workers and their families on the one hand and economic factors on the other.

China’s revolutionary and controversial Belt and Road Initiative, meant to link East and West, has dipped its toes into Armenia.

Deep tech startups are built on scientific and engineering discoveries and innovations. In the Armenian startup ecosystem, there are only a handful of deep tech startups. One of them is Krisp.

Economist Samson Avetian takes a brief look at the history of complicated relations between the U.S. and Iran. He argues that economic relations between Armenia and Iran are unlikely to see significant changes even in light of Iran’s escalating tensions with the West.

Armenia’s Metsamor Nuclear Power Plant, located in a seismically active area, was designed to be decommissioned in 2016. It has been a topic of debate and discussion in Armenian society for decades. Justin Tomczyk takes a closer look.

Economist Ani Avetisyan looks at the recent decision by Armenia’s government to switch to a flat income tax system and argues that cutting tax rates is not an efficient tool for decreasing shadow economy if a country is institutionally underdeveloped.

Armenia’s Information and Communication Technologies sector has been steadily growing over the past decade. Tatev Mkrtumyan focuses on three spheres that will impact Armenian hi-tech industries and place it on the global tech map.

Samson Avetian looks at a number of variables that can impact Armenia’s economic growth outlook and writes that despite the challenges, the Velvet Revolution has catalyzed and facilitated meaningful improvement and thus raised longer run GDP growth projections.

There is potential for an increase in investment activity in Armenia. Expectations of entrepreneurs need to be carefully managed in order to see this acceleration happen already as early as 2019, writes Samson Avetian.

In the second of a multi-part series, Dr. Lucyann Kerry writes that as other countries set examples and move forward to solve transport problems, Armenia may have an opportunity to use its energized political will and seek innovative solutions to its transport system.

There has been much discussion about the new tax reform being proposed by Armenia’s new government. Samson Avetian teases out some of the key issues of the reform.

In the first of a series of articles, Dr. Lucyann Kerry proposes ways to reconfigure, reconnect and reconstruct the flow of resources, money/capital and human agency/interaction to revitalize the country based on successful models.

The majority of Armenia’s passenger and cargo transportation travels through the strategic Georgian land road of Lars, which is prone to natural disasters and often crippled because of congestion.

Education has the immense power to impact industries and the economy. Artashes Vardanyan writes about the need to transform the educational system to meet the needs of one particularly promising sector of Armenia's economy, the High-Tech industry.

Ineffective governance and institutional corruption are among the factors preventing Armenia from getting on a track to sustainable development. Yeghia Tashjian writes that since politics is the determinant force of economic institutions, any positive change in political institutions will reflect positively on Armenia’s economic development.

As the world becomes increasingly connected, states are adopting national strategies to protect themselves against cybersecurity breaches. This article outlines the ongoing debate around the terms ‘information security’ and ‘cybersecurity’ and examines global developments, as well as, Armenia’s institutional and policy advancements.

This is a multi-part series on cryptocurrency and its ecosystem. The first part, “Feathers to Fiat” explored what money actually is and its development throughout history. This second installment of the series dives into the next step in the evolution of money--the invention of Bitcoin.

In this first piece of a four-part series on cryptocurrency and its ecosystem, Tigran Asriyan explores what money actually is, its development through history, and the evolution of money -- the invention of Bitcoin. Upcoming articles will cover the next generation of cryptocurrencies, address use cases, and its many applications for Armenia.

Fish farms that showed up in the Ararat Valley in the early 2000s, as part of a development and poverty reduction program, have devastated the valley and Armenia’s second largest water basin. Now the state is trying to salvage the main hub of Armenia's agriculture and the strategically important water basin from desertification; trying to refill a bottomless well drop by drop.

Today, the demand for increased agricultural productivity to ensure food security, the use of genetically engineered crops and powerful conglomerates that control most of the world’s seed industry like Monsanto are threatening the lives and livelihoods of small farmers all over the world. This contentious global debate has now found its way to Armenia. EVN Report investigates.

Women are entering the technology sector in Armenia in growing numbers. Most argue that entry barriers are almost non-existent and today there are equal opportunities for men and women to make their mark in the fast-paced and fast-growing industry. EVN Report profiles the women of PicsArt, who are helping the company expand its reach in leadership positions.

EVN Report's contributor Kristen Anais Bayrakdarian, takes an exhaustive look at the travel and tourism sector in Armenia, including the need for investments in environmental sustainability and developing tourism infrastructure.

The favorable IT climate in Armenia is the reason for the recent software boom.There are more than 450 IT companies, which are employing more than 10 thousand software developers and engineers. Around two thirds of Armenian IT output is exported to over 20 countries. So what is standing between Armenia and its dream of building a "Silicon Mountain"?

The emerging startup ecosystem in Armenia is very vibrant but faces many challenges. Tech expert and startup enthusiast, Artashes Vardanyan takes a critical look at the existing beliefs in the startup sector that need to be readjusted to ensure future success.

The engine to a developed economy is the competitiveness of local businesses, because they are the building blocks of the economy and the country’s development. It is time for Armenia’s economy to advance to the next level of efficiency and each company has a unique role to play in this regard, writes Sona Grigoryan.

"Why Nations Fail" and why is Armenia's economy failing - Armen Grigoryan's case-study of Acemoglu's and Robinson's economic theories and their implications in Armenia's economy and politics.

Many observers believe that current trends in the global IT market are creating new opportunities for growth and relevance for Armenian tech companies. If the industry at large – as well as government and educational institutions – react quickly and earnestly to these trends, Armenia has an opportunity to capture an inordinate share of the new value being created as a result of these trends.

The Diaspora has been an inherent component of Armenian reality since antiquity. Its enduring roots, affluent heritage and indispensability to the Armenian nation is difficult to challenge. This article examines the global entrepreneurial endowment of the Diaspora, how it developed and what its role can be today for the Republic of Armenia.

Sassoon Grigorian writes that Armenians are noted problem solvers, world leaders in the strategy game of chess and have the ability to be a world leader in a technology niche.

How can responsible companies solve problems that exist in society to create a win-win situation for both the country and the business itself? Nazareth Seferian explores Corporate Social Responsibility in Armenia.