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Republic of Armenia The country Location: Southern Caucasus Area: 29,800 sq.km. Population: 3.2 million (urban/rural – 64%/36%) Growth rate: 0.5% Age % of population Up to 25 40% 25-44 30% 45-64 20% Capital: Yerevan (1 mil.) Literacy: 99% HDI: 83 (out of 177) Socially unsecure pop.: 20% (7.2% extremely poor) Armenia Republic of Armenia The economy and social situation Armenia GDP 2008: $11.8 /€9 billion GDP per capita: $3,689/ €2,824 GDP growth: 7% in 2008 (12% average growth in 2003-2007) Others Inflation: 5.2% (2008) Industry 10% 13% State budget: tripled since 2003 Services 34% Unemployment: 6.3% Agriculture External debt/GDP: 16.4% 16% (45% in 2000) External trade: €4.1 billion (23.5% increase over 2006) Constr. 27% Export ($ million) 700 2003 742 2004 987 1,046 1,224 2005 2006 2007 Republic of Armenia Investments in the country 1337 FDI $mln Armenia 605 230 Comp.s with foreign capital FDI by sectors 2003 2449 2006 3347 2007 3700 Tourism Food Mining Telecom Rankings Index of economic freedom – 28 (44 in 2004) Ease of doing business - 39 Republic of Armenia Why to invest o o o o o o o Armenia MFN regime with 150 countries (WTO full membership) FTA regime with CIS (tariff free access to 250 m. market) GSP regime with EU, USA, Canada, Japan Cost Effective and Qualified Work Force No Restrictions on Foreign Investor Ownership All Exports from Armenia are Duty Free The Import Tariff Rates - 0/10 % Where to invest Agriculture/business Pharmaceutical Tourism Information Technology Republic of Armenia Agriculture and food processing Armenia Fast growing sector with large export potential - Average annual growth of output (2005-2007) – 13% - Total output for 2008 – €1.3 billion (anim./plant 33%/67%) - Export volume doubled during 2004-2007 ($400mln) High potential for producing ecologically safe products Emerging “Armenian brand” of agricultural products Largely available skillful labor force Competitive advantage of certain products in outside markets Fragmented and small farms (340,000 farms /100 enterprises) Lack of “long” money Republic of Armenia Agriculture and food processing Armenia Main products Major players Fresh vegs/fruits Ashtarak-Kat dairy Dried/packed vegs/fruits Biokat dairy Canned vegs/fruits Marianna dairy Cheese Lousakert poultry Eggs Arzni poultry Wine Meghri cannery Fish Artfood Ijevan wine Republic of Armenia Agriculture and food processing Concrete opportunities for investments Company Specialization Investments needed Armenia Profitability (IRR) Meghry cannery Jam, preserves, syrup, bever. €150,000 for modernization 19% 5 years KHAQ ltd Full range of milk products €60,000 for increasing production volumes 21% 5 years Golden goat ltd. Cheese (8 types) €65,000 for new facil. and equipment 20% 5 years CHIR ltd. Dried vegs./fruits €150,000 for new facil. packaging equipment 20% 5 years Ishkhan ltd. Jam and preserves €280,000 for new workshop 23% 5 years Project by GoA – free economic zone in Zvartnots airport with full logistic center for export of agricultural products. Investment - $50 mln. Duration – 15 years. IRR – 22% Republic of Armenia Tourism - 4.7% of GDP of the country - $285 mln. of investments - 4,200 hotel rooms - Competitiveness rank – 89th (of130) # of tourists (ths.) 510 263 2004 318 2005 559 382 2006 2007 2008 Niches with highest potential: Eco-tourism, agro-tourism Armenia Republic of Armenia Tourism Concrete opportunities for investments Company Specialization Investments needed Armenia Profitability (IRR) Lussi. Ma. Ltd Spa hotel in Arzni €1mln for reconstruction 22% 6 years TANMAR Ltd Resort center in Sevan (start up) €2.8mln for const of the center 19% 7 years A special project by CARD Black OX ltd Training and agro-tourism center €30,000 for B&B and training center N/A Republic of Armenia CONTACTS Armenia UNDP ARMENIA UN House, 14 P. Adamyan Street, Yerevan, 0010, RA Tel: (37410) 547268 Mob: (37491) 240104 Fax: (37410) 543811 e-mail: [email protected] URL: www.undp.am; Armenian Development Agency Address: 17 Charentsi, Yerevan, 375025 Armenia. Tel: (+374 10) 570410 Fax: (+374 10) 570710 E-mail: [email protected] Website: www.ada.am