Economy, Manufacturing

During the Soviet era Armenia was industrialized and integrated into the USSR’s economic system. Most industries depended on raw materials or partially finished goods from other Soviet republics, which also were the primary markets for Armenian products. Manufacturing plants produced consumer goods such as fabrics and footwear, chemicals, refined metals, and lasers and electronics for the military. Economic blockades beginning in 1989 and severe fuel shortages stalled most industrial output by the early 1990s. Industrial production began to resume as the political situation stabilized in 1994. Still, the lack of markets to replace those lost in the collapse of the Soviet Union and a slowly moving industrial privatization program remain obstacles that must be overcome before industry returns to its former strength.