The United States Department of State has released its 2024 Investment Climate Report, shedding light on significant challenges facing Armenia's business environment.
According to Report, the document highlights several key issues that are hampering foreign investment and economic growth in the South Caucasus nation.
One of the primary concerns outlined in the report is the weakness of Armenia's rule of law and judicial system. The State Department emphasizes that laws are undermined by a lack of independence, capacity, and professionalism in key institutions, most critically in the judiciary. Business entities tend to view Armenian courts as suffering from low levels of efficiency, independence, and professionalism, underscoring the urgent need for judicial reform.
According to the State Department, business associations in Armenia report the necessity for extensive reforms across various sectors, including tax administration, customs, healthcare, education, and law enforcement agencies.
The document highlights worries expressed by private sector representatives regarding the quality of dialogue between businesses and the government. There are also concerns about the ability of government officials to promptly address issues faced by investors.
American companies have reported that the investment climate is marred by an inability to enforce intellectual property rights (IPR), although the Armenian government has committed to strengthening the protection of these rights.