YEREVAN, FEBRUARY 16, ARMENPRESS. Armenia has improved its ranking by 21 points in the Index of Economic Freedom of The Heritage Foundation and The Wall Street Journal. Armenia ranks 33rd with 70.3 points among 180 countries and is among “mostly free” countries.

“Armenpress” reports Armenia ranks 19th among 45 countries in the European group, at the same time preserving its leading position among the CIS states.

“Considerable diversification of Armenia’s economic base has increased economic dynamism, and a decade of strong economic growth has reduced poverty and unemployment rates. Broad simplification of business procedures has facilitated regulatory efficiency. After years of expansionary fiscal policies, efforts have been made to limit the cost of government through more prudent management of public finance.

Armenia performs relatively well in many categories of economic freedom, but more reforms are needed to enhance judicial independence and government transparency. Despite progress in tackling corruption, particularly in the tax and customs administrations, close relationships within political and business circles raise concerns about cronyism and undue influence.

Armenian law protects secured interests in personal and real property. The judiciary lacks independence and transparency. All disputes involving contracts, ownership of property, or commercial matters are resolved in the courts of general jurisdiction, which handle both civil and criminal cases and have long backlogs. Pervasive corruption has been aggravated by Russia’s consolidation of its influence over Armenia’s economy and regional security.

The regulatory framework is relatively efficient. The minimum capital requirement for business start-ups has been eliminated, and bankruptcy procedures have been modernized. 

Trade is important to Armenia’s economy; the value of exports and imports taken together equals 71 percent of GDP. The state no longer has a stake in any bank, but the banking sector, which accounts for over 90 percent of total financial-sector assets, still struggles to provide adequate long-term credit”, The Heritage Foundation says.

Georgia ranks 13th, Turkey ranks 60th, Azerbaijan – 68th and Iran - 155th according to the Index of Economic Freedom.

Hong Kong, Singapore and New Zealand top the list of most liberal economies.