Armenia's economy expected to grow by 5.6 per cent in 2025 - Finance Minister

YEREVAN, 28 October. /ARKA/. Armenian Finance Ministry expects a 5.6 percent economic growth in 2025, minister Vahe Hovhanissyan told a parliament discussion on the draft state budget drawn up for the next year.

'We expect that the gross domestic product (GDP) will amount to 11 trillion 50 billion drams, while the deflator to 3.5%," Hovhannisyan said.

He pointed out that economic growth of 5.8 per cent is forecast for 2024. The government expects to collect this year 2 trillion 455 billion drams in revenue, down from the earlier planned 2 trillion 613 billion drams.

‘In 2026-2027, we expect economic growth of 5.5 per cent on average. Provided this growth, the government will implement its program and ensure, on average, 7% economic growth between 2021 and 2026,’ - Hovhannisyan said .

At the same time, he noted that the goals have not changed and the government will strive to ensure 7 per cent growth in 2025, for which additional efforts will be made along with acceleration of reforms.

Hovhannisyan informed that the spending part of the 2025 state budget is projected at 3 trillion 452 billion drams and the revenues – at 2 trillion 873 billion drams. The projected budget deficit is 5.5 per cent or 609 billion drams.

The minister noted that next year the tax-to-GDP ratio is expected to make 25%.

The draft state budget for 2025 approved by the Armenian government envisages an average inflation of 3.5%, and the ratio of government debt to GDP - at 53.5%. ($1 - 387.25 drams).-0-