Syunik is one of the biggest economic regions in RA with big industrial and natural raw material potential. The leading branch of marz economy is mining industry. Kapan copper mines operate as long as Middle Ages. Their industrial exploitation have started in the second half of the 19^th century by the French who built here foundries. When in 1935 the Kapan ore-dressing combine was operated the town was one of the biggest copper industry centers in the USSR. Later the industrial exploitation of non-metal fossil minerals (construction stones, limestone, diatomite, etc.) was expanded through the whole marz. The production of the building material was established, which was progressed later on.

            In 1951-52 the copper-molybdenum combines of Kadjaran (Zangezour) and Dastakert and in 1963 Agarak were exploited. Hydroelectric power system was built on the river Vorotan. The reservoirs of Spandarian, Tolorsand and Shamb were built for irrigation system and energetics.

            In 1960-70s dozens of enterprises of light and food industry, machinery, instrument- making and other branches of economy were established.

The region became an important railway and motor-road link in the south of Armenia. In the result of Armenian-Azerbaijanian war and the collapse of the USSR the economy, especially industry was greatly damaged. Majority of industrial enterprises except Zangezour Copper-molybdenum combine and energetic enterprises were bankrupt. In the last years there is a tendency of improvement and steady development of industrial enterprises in the region. As compared with 2001 the total indicator of production for 2002 has increased with 6.5 % and made 26.1 milliard drams. Mining industry enterprises make 85 % of economy, energetics makes 10 %, grain-production 2 %, other produce enterprises 3 %.

The three big enterprises of “Zangezour Copper-molybdenum combine”, “Agarak Copper-molybdenum combine”, and "Kapan ore-dressing combine” (Closed Joint Stock Companies) present the leading mining industry in marz. The enterprises with about 4100 employees have a great influence on social-economic life of the region and the republic as well. 40 % of the industrial produce is marketed within Armenia involving 10000 people.

The guarantees for maintenance of mining branch are availability of raw materials, technological, staff potential and market.

In 2002 1150 million kilowatt/hour electricity has been produced in the region that is 2 times more than the previous year indicator. I general 20 % of electricity and 65 % of hydroenergy have been produced on the republic level in Syunik region.

During 2002 a production increase of several enterprises is observed (192 new work places are opened).

In the last years the gas-supply is being restored. In 2002 13.5 million m³ of gas was consumed in the region, which exceeds the previous year indicator by 35 %. Only 30 % of the previously gasificated centers has been reopened.

Grain-production makes 2846 t. As compared with previous year it has increased by 3.3 %. In 2001-2002 15 enterprises and companies are established and reopened. In the last years small and medium entrepreneurship is also improving in the region. About 3300 private entrepreneurs and 2350 juridicial persons (of which 202 with the state participation) are registered in the State Register. Despite the fact that the small and medium enterprises are supported by the government and international organizations the entrepreneurship   in the region is developing slowly.

One of the leading branches of the economy is capital-engineering. In 2002 capital engineering works of 3376.8 million drams and capital repair works of 713.3 million drams have been implemented.

The absence of railway and air transport does not hinder the improvement of road-building and motor-road communication in the region. Regularly reconstructed hard covered motor-road has in total 987 km long (of which 260 km is of interstate, 475 km of republican and regional, 75 km of community importance. In 2002 road-building works of 1 milliard 354 million drams have been implemented.

Since 2002 with support of World Bank the reconstruction works of Yerevan-Meghri interstate road, Kapan-Kadjaran road part with total estimate cost of 1 milliard 86 million drams have started. Reconstruction of Goris-Kapan road part is financed by RA State budget (95 million drams).

With support of “Armenian fund” capital repair works of Khndzoresk inner-community and Kapan-Shikahogh republican roads have been completed.

With support of “Integrated Food Security Program-South Armenia” (6.7 million drams) the bridge construction of Tasik village was carried out. Construction works (23 million drams) of “Karahunch village bridge-pass” started since 2001 are completed.

There are regular routes for passengers to Yerevan, Karabakh and Iran. 34 inner-regional routes are operating.