The government is facing a large budget deficit, and the unemployment rate remains above 16 percent in Armenia.
Corruption and poverty fed mass-opposition protests in Armenia, ultimately forcing Prime Minister Serzh Sargsyan to resign on April 23.
The country was facing deflation and extremely weak domestic demand at the end of the last year.
The country of 3.2 million depends heavily on aid and investment from former imperial master Russia, whose economic downturn has hit Armenian exports as well as remittances from Armenians working there in recent years.
"We sell to the United States. We make custom-made carpets. We don't produce much like before. We try to keep the companies running, but we don't produce much like 20 years, or 15 years, 10 years ago," said Rafi Megerian, an owner of Megerian Rugs.
Around 11 percent of its population lives below the poverty line, earning less than $3.20 (1,530 Armenian drams) a day, says the government as it is constantly facing budget deficits, and the unemployment rate remains above 16 percent.
TRT World's Iolo ap Dafydd reports.