An improvement in Armenias business environment has coincided with its climb up Euromoneys Country Risk rankings in the first half of 2012.
Armenias ranking has improved by 10 places in the World Economic Forums (WEF) 2012 global competitiveness index, with the country now ranked 82nd globally.
Published annually, the WEF index assesses the competitiveness of 144 economies. The report is compiled using publically available data and surveys of local entrepreneurs.
The improvement in Armenias WEF ranking corresponds with its rising ECR country risk assessment. The sovereigns ECR score has improved by three points since January, to 44, leaving Armenia ranked 78 on ECRs rankings. Armenia has climbed 12 places in the rankings since Q1 2012.
Armenias economic assessment score increased by 3.2 points from Q1 2012 to 48.6 in September, the highest score increase among the three main assessment criterias covered in ECRs survey.
Armenias ECR government-finances indicator, which measures a countrys overall fiscal strength, rose from 4.0 for January to 4.5 for September, although the country still recorded a government deficit of 2.7% in 2012.
Additionally, the sovereigns score in the government non-payments/non-reptriation indicator (a measure of transfer risk) improved by 0.9 points from January to 6.7 in September.
Accounting for Armenias increased economic score, David Babasyan, an analyst at the Central bank of Armenia and one of ECRs contributors, says: During 2011, the government of Armenia and the central bank attracted funds from various international financial institutions, which were successfully injected into the economy.
Increased competition in the financial sector has also contributed to more favourable terms of lending and easier access to finance.