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$806.17

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$117686

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$0.780386

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$3749.15

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$179.64

33 °

Yerevan

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38 °

Dubai

20 °

London

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Beijing

20 °

Brussels

32 °

Rome

30 °

Madrid

Armenia's Economic Freedom Index - 2025. Instead of progress, loss of positions. Luys Foundation

The Luys Foundation has analyzed the annual "Index of Economic Freedom-2025" report published by the "Enetical Freedom" Foundation.

In 2025, the RA Index of Economic Freedom was 65.4 points, with 0.5 points more than last year, but with 6.5 points less than 2021. After three years of decline in 2025, the Index of Economic Freedom of Armenia has increased, but that growth is more than doubly slow.

Armenia ranks 57th among 176 countries in the world. Armenia's position in the ranking deteriorated by 10 horizontons at once, despite the fact that the index growth has been registered. The reason is that this growth is significantly inferior to the average growth of the world and all regions.

Armenia has dropped 4 places in the ranking of "Europe" region and ranks 30th. The retreat of Armenia's position in the regional rankings is the largest.

Armenia has been classified as economically "moderately free" since 2022. Before that, in 2020 and 2021, Armenia was involved in the group of economically "mainly free" countries. Our country has been considered economically "mainly free" in 2017.

The report of 2025 states that "the foundations of economic freedom in Armenia are not stronger by an independent judiciary, and corruption reduces the possibilities of economic development."

Armenia is "mostly free" in the 12 sub-index of the Economic Freedom Index, "Moderately Free", "Moderate Free", "Mostly Non-Free", "Suppressed". The two sub-indices of Armenia, the "Protection of Property Law" and "The Efficiency of Justice" are lower than their global average level. By the way, compared to the previous year, these two subins decreased.

The most popular one of the 4 groups of subins remains the state of the "Priority of the Law" group. This year, Armenia has been considered economically "depressed" on two of the three subins of the group this year. In 2024, Armenia was considered "depressed" on only one sub-index. The report of 2025 also states that "the overall priority of the law in Armenia is weak."

A significant decrease in all three subins of the "Market Open" group has been registered. At the same time, the two subins of the group decreasing the minimum value of the group of countries in this group. By the way, in the last year, the "Financial Freedom" sub-check has decreased by 10 points at once, as a result of which Armenia has been "Most Free" groups of "Moderately Free" countries.

Compared to 2024, significant improvement was recorded on "Fiscal Stability" and "State Expenditures" sub-indicates due to the fact that the average value of the last three years of the state budget deficit and the government debt / GDP ratio has decreased. Considering that according to official information, this and at least further two years is planned to increase these indicators, it can be expected that these subins will decrease in the coming years.

Armenia is a leader among EEU member states this year, but the difference between Kazakhstan's Index is in the second place is reduced year by year.

This year, Armenia is inferior to Georgia only from four neighboring countries in the Index of Economic Freedom. The retreat of Armenia's ranking is greater than all neighbors.

The analysis is fully available as follows:With reference.

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