Armenia strengthens its economic environment

Armenia strengthens its economic environment

The Washington-based Heritage Foundation, one of the most impactful structures in the public policy of the United States, has finally announced the 2021 index rankings.

It has been good news for the Armenian economy as Heritage Foundation’s estimates show that the country has moved 2 notches up in 2021 economic freedom rankings.

The economic freedom score of the country is 71.9 (+1.3 points vs 2020 index), which is above the regional and world averages. The 2021 score ensured 18th place for Armenia among 45 countries in the European region.

The foundation indexes the countries based on assessing several criteria. The openness of the market, business/labor freedom, and the relevant regulations, as well as the state-level protection of property rights, are the main factors processed and analyzed.

The Heritage Foundation

For the past few years, Heritage Foundation has estimated Armenian economic freedom as either free or moderately free.

According to the 2021 report, Armenia is “seen” by the Heritage Foundation as a country with a “mostly free” economy.

This estimate is quite promising because more than 8 dozen countries with less than 61.6 scores were classified as countries with “not free” or “oppressed” economies.

According to the 2021 index, countries that fall under the categories “free” and “mostly free”, have greater access to quality education, healthcare, and a clean environment.

As stated in the report, Armenia will further improve its ranking, provided that the country makes changes in judicial effectiveness and government integrity.

The improvement in economic indicators was expected as the year has been good for the Armenian economy in terms of both governmental activities and foreign investments.

Despite the lockdowns and restrictions related to the COVID-19 pandemic, the country has recorded significant growth in many sectors with agriculture and information technologies being the top winners. It was no surprise that Armenia recorded 1.4% GDP growth in agriculture in 2020.

Considering the projects listed in the agenda of the Ministry of Economy of the RA, as well as the growing interest from foreign investors towards Armenia, financial analysts set even higher expectations for the coming year.

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