The latest Index of Economic Freedom released by Heritage Foundation and Wall Street Journal, ranks Armenia 39th. Armenia scored 68.8 -- down nearly a point over last year in the index that factors corruption, government spending and monetary freedom in determining the ranking.

Among 43 European countries, Armenia ranks 19th, considerably better than its world ranking. About Armenia the 2012 report says:

"Following considerable liberalization and economic transformation over the past decade, Armenia demonstrated a moderate degree of resilience during the recent global economic slowdown. The overall regulatory framework remains efficient, facilitated by streamlined business procedures and competitive tax rates. Policies that support open markets are firmly in place, making the country’s investment and trade regimes competitive.

"Although the country performs relatively well in many of the four pillars of economic freedom, the foundations of economic freedom are not strongly sustained by a strong and independent judiciary. Lingering corruption further undermines opportunities for more vibrant and lasting economic development. Government spending has been expansionary in recent years, eroding limits on government."

In the region: Azerbaijan 91, Georgia – 34, Turkey -73, Iran – 17