This publication is intended to be an annual overview of the political and economic situation in Armenia, as well as those global and regional developments that affect Armenia and the region. 2008 began with a political campaign season, moved on to the presidential election in February, then the tragic events of March, which colored all subsequent domestic political and social processes for the rest of the year. Economically, expectations were that 2008 would be a difficult year in which to try to sustain the double-digit growth of years past and begin to make some real headway in reducing economic disparities by introducing second generation reforms. Those expectations were fulfilled and compounded when the US financial crisis mushroomed into a global emergency that also infected Armenia.