How did the Nagorno-Karabakh conflict affect Armenia’s economy in the 1990s?

The Nagorno-Karabakh conflict significantly devastated Armenia’s economy during the 1990s, primarily due to a blockade imposed by Azerbaijan in 1989.12

This blockade closed a vital natural gas pipeline, leading to severe energy shortages. These conditions, compounded by the disruption of key trade routes caused by civil unrest in neighboring Georgia, resulted in a sharp decline in industrial production. The economic impact was further exacerbated by the aftermath of a massive 1988 earthquake, which had already destroyed nearly one-third of the country's industrial capacity.1

As a result of these combined factors, the majority of the population experienced severe economic hardship throughout the decade. The resulting decline in living conditions was so profound that it led hundreds of thousands of Armenians to emigrate.12