Fitch Forecasts Armenia's General Government Deficit to Narrow to 3.4% of GDP by 2028
13.07.2026,
16:38
Fitch Ratings, the international rating agency, forecasts the general government deficit to narrow to 3.4% of GDP in the medium term by 2028, above the government's medium-term deficit target of 2.8% of GDP.
YEREVAN, July 13. /ARKA/. Fitch Ratings, the international rating agency, forecasts the general government deficit to narrow to 3.4% of GDP in the medium term by 2028, above the government's medium-term deficit target of 2.8% of GDP.
"The general government deficit in 2025 was 3.7% of GDP, below the budgeted level but above the 'BB' median (2.8%). We forecast a slightly higher deficit in 2026, in line with the government's revised budget target," the report states.
It notes that current expenditure growth remains high due to rising healthcare costs, driven by the introduction of universal health insurance, and higher pensions. This is partly offset by lower defense and security spending.
"The general government deficit in 2025 was 3.7% of GDP, below the budgeted level but above the 'BB' median (2.8%). We forecast a slightly higher deficit in 2026, in line with the government's revised budget target," the report states.
It notes that current expenditure growth remains high due to rising healthcare costs, driven by the introduction of universal health insurance, and higher pensions. This is partly offset by lower defense and security spending.
