Armenia has a very small economy that has carried out strong reforms in many areas over the past decade and a half. It grew at a very fast pace prior to the global crisis (about 12 percent on average between 2000 and 2007), in part due to a strong inflow of remittances and Foreign Direct Investment (FDI). But exports (which are highly concentrated around copper, molybdenum, and tourism) stagnated from 2005 when growth in income per-capita continued while exports per capita started to fall-thus the bulk of Gross Domestic Product (GDP) growth was driven by the non-tradable sectors and in particular construction. The country was significantly hit by the global financial crisis with output falling by over 14 percent last year. Looking forward, the country faces a number of significant constraints to its development-among others a complete closure of two of its four borders, which raises transport costs and reduces contestability in local markets. On the other hand, the country's skill base is strong , and some industries are strong or have a very strong potential (tourism, mining, alcoholic products, and agro-businesses). The post-crisis policy package includes - at the macroeconomic level - the introduction of significantly more flexibility of the exchange rate, and the implementation of fiscal stabilization measures. At the micro-level the authorities are promoting expansion of sectors such as Information Technology (IT), tourism and agri-businesses.