Armenia prides itself on being the first nation to formally adopt Christianity (early 4th century). Despite periods of autonomy, over the centuries Armenia came under the sway of various empires including the Roman, Byzantine, Arab, Persian, and Ottoman.

During World War I in the western portion of Armenia, Ottoman Turkey instituted a policy of forced resettlement coupled with other harsh practices that resulted in an estimated 1 million Armenian deaths.

The eastern area of Armenia was ceded by the Ottomans to Russia in 1828; this portion declared its independence in 1918, but was conquered by the Soviet Red Army in 1920. Armenian leaders remain preoccupied by the long conflict with Muslim Azerbaijan over Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow.

Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper.

The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution. Turkey imposed an economic blockade on Armenia and closed the common border because of the Armenian occupation of Nagorno-Karabakh and surrounding areas.

Source: CIA World Fact Book

Population: 2,971,650 (July 2007 est.)

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Age structure: 0-14 years: 19.5% (male 307,610/female 271,381) 15-64 years: 69.3% (male 962,126/female 1,098,192) 65 years and over: 11.2% (male 132,705/female 199,636) (2007 est.)

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Median age: total: 30.8 years male: 28.1 years female: 33.6 years (2007 est.)

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Population growth rate: -0.129% (2007 est.)

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Birth rate: 12.34 births/1,000 population (2007 est.)

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Death rate: 8.29 deaths/1,000 population (2007 est.)

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Net migration rate: -5.34 migrant(s)/1,000 population (2007 est.)

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Sex ratio: at birth: 1.16 male(s)/female under 15 years: 1.133 male(s)/female 15-64 years: 0.876 male(s)/female 65 years and over: 0.665 male(s)/female total population: 0.894 male(s)/female (2007 est.)

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Infant mortality rate: total: 21.69 deaths/1,000 live births male: 26.69 deaths/1,000 live births female: 15.91 deaths/1,000 live births (2007 est.)

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Life expectancy at birth: total population: 72.12 years male: 68.52 years female: 76.29 years (2007 est.)

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Total fertility rate: 1.34 children born/woman (2007 est.)

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HIV/AIDS - adult prevalence rate: 0.1% (2003 est.)

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HIV/AIDS - people living with HIV/AIDS: 2,600 (2003 est.)

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HIV/AIDS - deaths: less than 200 (2003 est.)

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Nationality: noun: Armenian(s) adjective: Armenian

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Ethnic groups: Armenian 97.9%, Yezidi (Kurd) 1.3%, Russian 0.5%, other 0.3% (2001 census)

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Religions: Armenian Apostolic 94.7%, other Christian 4%, Yezidi (monotheist with elements of nature worship) 1.3%

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Languages: Armenian 97.7%, Yezidi 1%, Russian 0.9%, other 0.4% (2001 census)

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Literacy: definition: age 15 and over can read and write total population: 99.4% male: 99.7% female: 99.2% (2001 census)

Under the old Soviet central planning system, Armenia had developed a modern industrial sector, supplying machine tools, textiles, and other manufactured goods to sister republics in exchange for raw materials and energy. Since the implosion of the USSR in December 1991, Armenia has switched to small-scale agriculture away from the large agroindustrial complexes of the Soviet era. The agricultural sector has long-term needs for more investment and updated technology. The privatization of industry has been at a slower pace, but has been given renewed emphasis by the current administration. Armenia is a food importer, and its mineral deposits (copper, gold, bauxite) are small. The ongoing conflict with Azerbaijan over the ethnic Armenian-dominated region of Nagorno-Karabakh and the breakup of the centrally directed economic system of the former Soviet Union contributed to a severe economic decline in the early 1990s. By 1994, however, the Armenian Government had launched an ambitious IMF-sponsored economic liberalization program that resulted in positive growth rates in 1995-2006. Armenia has managed to slash inflation, stabilize its currency, and privatize most small- and medium-sized enterprises. Despite strong economic growth, Armenia's unemployment rate remains high. Nuclear power plants built at Metsamor eliminated the chronic energy shortages Armenia suffered in the early and mid-1990s, but those plants are under international pressure to close. Armenia is now a net energy exporter, although it does not have sufficient generating capacity to replace Metsamor. Construction of a natural gas pipeline between Iran and Armenia has been completed and it is scheduled to be commissioned by April 2007. Economic ties with Russia remain close, especially in the energy sector. The electricity distribution system was privatized in 2002 and bought by Russia's RAO-UES in 2005. Armenia's severe trade imbalance has been offset somewhat by international aid, remittances from Armenians working abroad, and foreign direct investment. Armenia joined the WTO in January 2003. The government made some improvements in tax and customs administration in 2005, but anti-corruption measures will be more difficult to implement. Investment in the construction and industrial sectors is expected to continue in 2007 and will help to ensure annual average real GDP growth of more than 10%.

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GDP (purchasing power parity): $16.94 billion (2006 est.)

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GDP (official exchange rate): $6.6 billion (2006 est.)

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GDP - real growth rate: 13.4% (2006 est.)

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GDP - per capita (PPP): $5,700 (2006 est.)

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GDP - composition by sector: agriculture: 17.7% industry: 42% services: 40.3% (January-November 2006 est.)

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Labor force: 1.2 million (November 2006)

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Labor force - by occupation: agriculture: 45% industry: 25% services: 30% (2002 est.)

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Unemployment rate: 7.4% (November 2006 est.)

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Population below poverty line: 34.6% (2004 est.)

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Household income or consumption by percentage share: lowest 10%: 1.6% highest 10%: 41.3% (2004)

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Distribution of family income - Gini index: 41 (2004)

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Inflation rate (consumer prices): 2.9% (2006 est.)

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Investment (gross fixed): 20.9% of GDP (2006 est.)

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Budget: revenues: $1.3 billion expenditures: $1.6 billion; including capital expenditures of $NA (FY07 est.)

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Agriculture - products: fruit (especially grapes), vegetables; livestock

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Industries: diamond-processing, metal-cutting machine tools, forging-pressing machines, electric motors, tires, knitted wear, hosiery, shoes, silk fabric, chemicals, trucks, instruments, microelectronics, jewelry manufacturing, software development, food processing, brandy

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Industrial production growth rate: -1.2% (2006 est.)

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Electricity - production: 6.317 billion kWh (2005)

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Electricity - consumption: 4.374 billion kWh (2005)

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Electricity - exports: 1.012 billion kWh; note - exports an unknown quantity to Georgia; includes exports to Nagorno-Karabakh region in Azerbaijan (2004)

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Electricity - imports: 260 million kWh; note - imports an unknown quantity from Iran (2004)

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Oil - production: 0 bbl/day (2005)

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Oil - consumption: 41,000 bbl/day (2004 est.)

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Oil - exports: NA bbl/day

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Oil - imports: NA bbl/day

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Oil - proved reserves: 0 bbl

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Natural gas - production: 0 cu m (2004 est.)

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Natural gas - consumption: 1.33 billion cu m (2004 est.)

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Natural gas - exports: 0 cu m (2004 est.)

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Natural gas - imports: 1.33 billion cu m (2004 est.)

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Current account balance: -$247.3 million (January-September 2006 est.)

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Exports: $1.056 billion f.o.b. (2006 est.)

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Exports - commodities: diamonds, mineral products, foodstuffs, energy

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Exports - partners: Germany 17.4%, Netherlands 12.9%, Belgium 12.8%, Russia 12.6%, Israel 6.8%, US 5.8%, Switzerland 5.3%, Georgia 4.9%, Iran 4.7% (2006)

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Imports: $1.684 billion f.o.b. (2006 est.)

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Imports - commodities: natural gas, petroleum, tobacco products, foodstuffs, diamonds

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Imports - partners: Russia 20.1%, Ukraine 7.2%, Belgium 7%, Turkmenistan 6.5%, Italy 5.6%, Germany 5.3%, Iran 5.2%, Israel 4.4%, Romania 4.3%, US 4.1% (2006)

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Reserves of foreign exchange and gold: $880.8 million (September 2006 est.)

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Debt - external: $1.16 billion (30 September 2006)

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Economic aid - recipient: ODA, $254 million (2004)

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Currency (code): dram (AMD)

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Exchange rates: drams per US dollar - 414.69 (2006), 457.69 (2005), 533.45 (2004), 578.76 (2003), 573.35 (2002)

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Fiscal year: calendar year