Armenia economy is 69.4 percent free, according to our 2007 assessment, which makes it the world’s 32nd freest economy. Armenia is ranked 19th freest among the 41 countries in the European region.
Since the collapse of the USSR in December 1991 and the ongoing conflict with Azerbaijan over Nagorno-Karabakh Armenian economy faced a severe decline with small percentages of growth in select sectors. Armenia emerged from the umbra of the former Soviet Union in 1991 and migrated from a centrally planned economy (Communist system) to a market economy (capitalist system).
Until independence Armenia economy was based largely on industries like chemicals, electronic products, machinery, processed food, synthetic rubber, and textiles and highly dependent on outside resources. Since 1991, Armenia’s economy has also switched to small-scale farming away from the colossus agricultural complexes of the Soviet era. The service sector and small enterprises also constitute the mass growth of eceonomy of Armenia. Computer programming and software development have gained a significant foothold in the Armenia economy field in the last three years. The greatest economic potential for the country in the near future is tourism.
To meet the aspirations of the public, economic policies of Armenia have have been maximized the prospects for growth. The reforms of Armenia economy include sharpening competition through structural and institutional reforms, creating competitive conditions for economic activity and job creation, improving financial intermediation, fostering innovation, and integrating international services and factor markets.