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Armenia ranks 34th in the annual 2020 Index of Economic Freedom published by the Heritage Foundation.

Armenia’s economic freedom score is 70.6, making its economy the 34th freest in the 2020 index. Its overall score has increased by 2.9 points due to a significant spike in the fiscal health score. Armenia ranks 18th among 45 countries in the Europe region, and its overall score is just above the regional average and well above the world average, the report says.

Economic freedom has remained fairly constant in Armenia during the past 15 years, with the economy vacillating between moderately free and mostly free. GDP growth in the past two years has been especially robust as the economy has rebounded from a 2015–2016 regional slowdown. The government is pursuing structural reforms, export promotion, and greater foreign investment to boost future economic growth.

According to the Heritage Foundation, to attract greater investment and finally break out of its holding pattern to move higher into the mostly free category, Armenia will need to focus more intently on improving judicial effectiveness and government integrity.

Singapore tops the latest Index of Economic Freedom for the first time since 1995.

The index measures economic freedom based on 12 quantitative and qualitative factors, grouped into four broad categories, or pillars, of economic freedom: Rule of Law (property rights, government integrity, judicial effectiveness), Government Size (government spending, tax burden, fiscal health), Regulatory Efficiency (business freedom, labor freedom, monetary freedom) and Open Markets (trade freedom, investment freedom, financial freedom).