Armenia - Future trends

A major impediment to Armenia's economic growth is its lack of infrastructure. Antiquated equipment has not been upgraded because of a lack of funds, and as a result many sectors of the economy are neither productive nor competitive. Most privatization efforts resulted in sales to people with connections who usually lacked either the commitment or the capacity to streamline operations. Industrial output is still low, and there is a lack of foreign investment. Armenia's imports exceed its exports by a 3-to-1 margin.

Although there are objective reasons for the failure of the Armenian economy, the widespread perception of corruption at every level of society seriously hampers the government's ability to attract foreign investment. The lack of confidence in the government has also created widespread political apathy among the population.

Furthermore, the high level of unemployment and seeming lack of hope in the country's future has created an emigration crisis. Although reliable statistics are hard to come by, the consensus among most observers is that hundreds of thousands of people have emigrated, with no indication that the exodus will abate anytime soon.