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Armenia’s economy has faced significant challenges in recent years. In 2021, the country’s gross domestic product (GDP) was $13.9 billion, reflecting a growth rate of 5.7%. However, Armenia continues to contend with high unemployment and inflation:
The economic structure is relatively balanced, with the service sector dominating at 53.16%. Agriculture and industry also play crucial roles in the economy. The ongoing conflicts with Azerbaijan over Karabakh have adversely impacted the service sector and financial system.
In response, international credit rating agency Fitch has downgraded Armenia’s credit rating, citing a harsher economic contraction than anticipated. The combined effects of these conflicts and the pandemic have stunted economic growth.
Despite these challenges, Armenia is taking steps toward economic recovery:
Ensuring long-term sustainable growth remains crucial, with an emphasis on structural reforms and regional stability.
Recent developments have highlighted potential benefits for trade relations between Türkiye and Armenia. According to a post on the official X account of the Permanent Mission of Armenia to the Organization of the Black Sea Economic Cooperation (BSEC), Armenia’s diplomatic mission in Istanbul has encouraged Turkish companies to invest in the country.
Türkiye’s investment could offer several advantages:
Collaborative efforts in these sectors could drive significant economic growth and foster regional stability for both countries.
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