Page "Economy of Armenia" Paragraph 3

Like other former States, Armenia's economy suffers from the legacy of a centrally planned economy and the breakdown of former Soviet trading patterns.

Soviet investment in and support of Armenian industry has virtually disappeared, so that few major enterprises are still able to function.

In addition, the effects of the 1988 earthquake, which killed more than 25, 000 people and made 500, 000 homeless, are still being felt.

Although a cease-fire has held since 1994, the conflict with Azerbaijan over Nagorno-Karabakh has not been resolved.

The consequent blockade along both the Azerbaijani and Turkish borders has devastated the economy, because of Armenia's dependence on outside supplies of energy and most raw materials.

Land routes through Azerbaijan and Turkey are closed ; routes through Georgia and Iran are adequate and reliable.

In 1992-93, GDP fell nearly 60 % from its 1989 level.

The national currency, the dram, suffered hyperinflation for the first few years after its introduction in 1993.