Head of Central Bank noted an acceleration in GDP growth and an increase in tax revenues in 2025

YEREVAN, June 8. /ARKA/. Economic growth in Armenia has accelerated in 2025, and tax revenues have increased, stated Martin Galstyan, Chairman of the Central Bank of Armenia.

According to him, when preparing the conclusion on the execution of the Armenian state budget for 2025, the Central Bank relied on three main approaches: an assessment of the sustainability of public debt in the medium term, the direction of fiscal policy, and its impact on long-term economic growth.

"During 2025, particularly in the fourth quarter, economic growth in Armenia accelerated. By the end of the year, GDP growth was 7.2%, which is approximately 2 percentage points higher than the government's target," Galstyan stated.

At the same time, the head of the regulator noted that growth was sustainable over the long term and exceeded the economy's potential.

"Construction, trade, and services continued to make the main contribution to economic growth. At the same time, a high concentration of growth in certain sectors remained, as did the influence of a number of short-term factors," Galstyan noted.

The head of the Central Bank emphasized that, under these conditions, inflation accelerated slightly. According to him, this was primarily due to the inflationary impact of the external sector, expanding domestic demand, and the influence of a number of temporary factors. As a result, annual inflation in December 2025 amounted to 3.3%, approaching the target.

The head of the Central Bank emphasized that, under these conditions, inflation accelerated slightly, primarily due to the inflationary impact of the external sector, expanding domestic demand, and the influence of a number of temporary factors. As a result, inflation in December 2025 reached 3.3%, close to the target.

"Fiscal policy in 2025, in line with the medium-term public expenditure program, was aimed at increasing investment to foster the country's economic growth while maintaining the principle of stabilizing public debt. Accelerated economic growth had a positive impact on tax revenues. Tax revenues increased by approximately 14% compared to 2024, and the tax-to-GDP ratio increased by 0.6 percentage points, reaching 24.1%," Galstyan said.

According to him, expenditure policy in 2025 also maintained its focus on increasing capital expenditures. As a result, state budget expenditures increased significantly, and their share of GDP increased by 2.6 percentage points, reaching 29.2%.

"At the same time, despite the ongoing challenges and uncertainties, thanks to the alignment of fiscal and monetary policies, we were able to ensure macroeconomic stability in the country in 2025," Galstyan noted. ($1 - 368.54 drams).