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Armenia is the second most densely populated of the former Soviet republics. After a series of hardships Armenia is slowly treading the recovery path. Armenia emerged from the umbrela of the former Soviet Union in 1991 and migrated from a centrally planned economy to a market economy. Since 1991, Armenia's economy has also switched to small-scale farming away from the colossus agricultural complexes of the Soviet era. The service sector and small enterprises also constitute the mass growth of economy of Armenia. The greatest economic potential for the country in the near future is tourism. The reforms of Armenia economy include sharpening competition through structural and institutional reforms, creating competitive conditions for economic activity and job creation, improving financial intermediation, fostering innovation, and integrating international services and factor markets.
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