Armenia’s economy stabilizing

The stability of Armenia’s economy depends heavily on economic stability in Russia. Positive developments in the Russian Federation will increase foreign direct investments in Armenia as well as private transfers.

As a report of Asian Development Bank 2011 states, Armenia’s economy started improving after a slump in 2009 however its growth was slow due to problems in the agricultural sector. The rate of growth depends on the prospects of development of export as well as foreign investments and private transfers. The country urgently needs to reform its economy to increase the compatibility and attraction of its economic environment.