Doing business becoming harder in Armenia

By AzerNews

Armenia's sluggish economy keeps regressing more and more and large companies are leaving the country.

Almost 8.000 companies suspended their operations in Armenia over the past year.

Some 7.945 companies have not yet submitted their report of the second quarter of 2014 to the State Revenue Committee, local media reported.

"The Committee reported that 86.637 companies were operating in the country during the second quarter of 2014, compared to 94.582 during the same period last year," media report said.

Armenia lacks favorable business environment. The country's small economy is suffering seriously from monopoly. Some special groups possess about 60 percent of Armenia's market. Only the companies working under oligarchs or officials are protected against economic unrest.

Armenia ranked 41st out of 187 countries in 2014 Index of Economic Freedom, the Heritage Foundation reported. The country ranked 38th out of 177 countries in the same index last year.

Armenian economy's score dropped by 0.5 points compared to 2013, reaching 68.9 score. The Heritage Foundation experts say the decline is due to the declining indicators of investment, entrepreneurship and financial freedom.

Countries that have taken up the 41st place are already considered regressive.

The government is still unable to fulfill its promises on creating favorable conditions for business, as the economy is in a complete deadlock.