Country Snapshot -
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Eastern Europe & Central Asia
Lower middle income
Below are select highlights for the data included in the profile.
- Successful reforms made it easier to do business in Armenia with remarkable improvements in three sub-indicators. In particular, the administrative burden of complying with taxes has been significantly reduced. As a result, firms make 10 tax payments a year on average, spending 380 hours a year filing, preparing and paying taxes. Total taxes amount to 38.8% of profit in Armenia. The country is ranked 37th out of 189 economies in Doing Business 2014.
- According to the latest Enterprise Surveys data (2013), tax rates, tax administration, and political instability represent the top three business environment constraints for private sector firms in Armenia.
- Statutory ownership restrictions on foreign capital, as measured by the Investing across Sectors indicators, exist in a number of key sectors of the Armenian economy. Foreign ownership of air transportation companies (domestic and international) is limited to a maximum of 49%. In addition to these restrictions, Armenian laws also limit foreign ownership in the airport operation and railway transportation sectors to 40%.
- Armenia’s economic freedom score is 68.9, making its economy the 41st freest in the Heritage Foundation’s Index 2014. Its overall score has declined by 0.5 point from last year, primarily due to combined deteriorations in investment freedom, business freedom, and fiscal freedom. Armenia is ranked 18th among the 43 countries in the Europe region, and its score is above the world and regional averages.*