The Government expects 5,6% economic growth in 2025 in Armenia, Finance Minister Vahe Hovhannisyan said.
He said 5,5% growth is expected in 2026-2027. Speaking to lawmakers at a parliamentary committee hearing on the 2025 budget, Hovhannisyan said significant changes have taken place in the economy.
“Our and international assessments indicate that the Armenian GDP’s growth potential has increased from 4,5 to 5,5 percent. We have projected to have 5,6% economic growth in 2025, the deflator growth will be 3,5%, and the nominal value of the GDP will be 11 trillion 50 billion drams. We expect 5,8% economic growth for 2024,” Hovhannisyan said.
In 2026-2027 the Government expects an average of 5,5% growth. In that case, the Government will have fulfilled its action plan of ensuring an average of 7% growth in 2021-2026, Hovhannisyan said.
“Although our target hasn’t changed. We will seek to achieve 7% growth in 2025, which requires additional efforts to accelerate the reforms that we are doing, to properly ensure the implementation of capital expenditures envisaged in the budget, and of course to actively work to diversify exports market and investments,” he said.
The budget deficit will be 5,5% due to moving some expenditures ahead, and will reach 3% in the mid-term. The Government debt will increase to 53,5%, subsequently balancing around 54,6% in the mid-term. The growths could be higher or lower depending on some risks materializing, he said.
