Like other newly independent states of the former Soviet Union , Armenia 's economy suffers from 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 Spitak earthquake , which killed more than 25,000 people and made 500,000 homeless , are still being felt . The conflict with Azerbaijan over Nagorno-Karabakh has not been resolved . The closure of Azerbaijani and Turkish borders has devastated the economy , because Armenia depends on outside supplies of energy and most raw materials . Land routes through Georgia and Iran are inadequate or unreliable . The GDP fell nearly 60 % between 1989 and 1993 , but then resumed robust growth . The national currency , the dram , suffered hyperinflation for the first years after its introduction in 1993
1988 Spitak earthquake
1988 Armenian earthquake
Armenia