[ armenia ranks as the most economically free nation in the CIS ]

Armenia was included in a list of countries with a high degree of economic freedom in 2007 occupying 28th place, higher than France, according to the annual survey "Index of Economic Freedom" conducted by the Heritage Foundation / the Wall Street Journal.

The appraisal of economic freedom is based on 50 economic indicators within the following categories: capital flows and foreign investments; banking and financial systems; monetary, budget and trade polices; salaries and prices; state interference in the economy; property rights and regulations; and black markets.

Armenia was included in a list of countries with a high degree of economic freedom in 2004 occupying 44th place together with France according to the annual survey "Index of Economic Freedom" conducted by the Heritage Foundation /the Wall Street Journal/.

Armenia has a successful record of transition creating a favorable macroeconomic climate based on a market economy. There has been consistent growth since 1994. The country has successfully implemented a comprehensive stabilization and structural reform program. In 1993, thefirststockexchange was established and the new currency, the Dram, was introduced.

Armenia - GenocideIndex of Economic Freedom

Index of Economy Freedom, 2000-2008

Country Rank
2000 2001 2002 2003 2004 2005 2006 2007 2008
Armenia 84 68 45 44 44 42 27 32 28
Azerbaijan 147 139 118 104 106 110 123 118 107
Georgia 120 114 108 113 91 100 102 35 32
France 37 39 45 40 44 44 44 45 43
Germany 22 20 20 19 18 18 19 19 23
Hungary 41 42 32 44 42 35 40 44 43
Iran 154 151 151 146 148 148 156 150 151
Poland 53 54 45 66 56 41 41 87 83
Russia 122 127 131 135 114 124 122 120 134
Turkey 49 63 105 119 106 112 85 83 74
Ukraine 116 133 137 131 117 88 99 125 133

Inflation

Since 1998 the inflation rate has stabilized at a low level thus promoting economic growth in the economy. According to official data provided by the Central Bank of Armenia, the average inflation rate for 2003 was 4.7% and for 2004 was 7.0%. In 2005, it was 2.2%.

Education / Labor Force

The majority of people (56%) are between the ages of 17 and 59 and the level of education is high. Education continues to be one of the main values in Armenian society. Today, there are 18 state universities, 8 foreign managed (American University, French University, European University and 5 Russian universities) and the remainder are private. There are more than 77,000 third-level students.



Exports and Imports of Armenia

Due to stable economic growth and an open trade system, exports have increased considerably since 1999, accompanied by import substitution as a result of an increase in domestic production. Exports increased by 5.1% in 1999 while import growth was negative, at -10.1%. In 2004 exports and imports increased by 4.3% and 5.6 % respectively. In 2005 the growth trend of exports was continued at 34.2%. For the same period, the main export countries were: CIS countries (18.9%); EU (46.6%); Israel (13.6%); and USA (6.5%).



Currency and Exchange Rate

The exchange rate regime of Armenian Dram (AMD) is free floating. It is freely convertible and companies can freely open foreign currency accounts in Armenian or foreign banks. In 2004 the annual average exchange rate was at 533.45 AMD per 1 US$. In 2005 the average exchange rate was 457.69 AMD per 1 US$.

Exports and Imports Growth Rate from 1999 to 2005

1999 2000 2001 2002 2003 2004 2005
Exports 5.1% 28% 14.1% 48% 34% 4.3% 31.5%
Imports -10.1% 9.1% 1.2% 13% 29.6% 5.6% 30.9%



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