The last gas pipeline supplying Armenia through Georgia was blown up in August 1993. Although a nuclear power station, the first in the Trans-Caucasus, has been opened, the country suffers from acute energy shortages. Armenia has few natural resources, but does exploit building materials and some mineral ores. Agriculture is dependent upon irrigation and the main crops are vegetables, particularly sugar-beet and potatoes, fruit and tobacco. Industrial activity contributes nearly 70 per cent of the economy but is nevertheless generally small-scale.
Further privatization is planned and foreign investment is being encouraged.
Tax reforms have been introduced. Before the break-up of the Soviet Union, Armenia had developed as a centre of the computer industry. Now, with western support, a fledgling software industry is emerging.