Stable economic growth in Armenia will depend on the effectiveness of the government's targeted policies in a number of areas – Central Bank
27.10.2025,
14:50
The impact of short-term economic growth factors from previous years is gradually neutralizing, so ensuring stable potential economic growth will depend significantly on the results of the Armenian government's targeted policies to increase productivity, stimulate exports, and improve the investment climate.
YEREVAN, October 27. /ARKA/. The impact of short-term economic growth factors from previous years is gradually neutralizing, so ensuring stable potential economic growth will depend significantly on the results of the Armenian government's targeted policies to increase productivity, stimulate exports, and improve the investment climate.
Central Bank of Armenia Chairman Martin Galstyan stated this during a discussion of the draft 2026 state budget.
In this regard, he emphasized the importance of the role and consistent increase in capital expenditures, which largely relates to the full and effective implementation of economic and infrastructure development programs.
"In 2026, fiscal policy will be guided by ensuring 5.4% economic growth, with an emphasis on fiscal consolidation and debt servicing, as well as maintaining the high level of economic potential built in recent years," Galstyan said. The head of the regulator also pointed out high external and internal risks in the context of significant geopolitical and economic uncertainty, concerning the stability of factors affecting economic potential and possible scenarios for economic prospects.
In terms of effective risk management, he emphasized the need to strictly limit the use of reserve funds.
"In the context of risks and uncertainties for economic growth prospects, ensuring the effectiveness and consistency of tax reforms in 2026 is a key factor," Galstyan added.
According to the head of the Central Bank, the primary focus of capital expenditures on strengthening economic infrastructure will stimulate economic potential and productivity and lay the foundation for the implementation of planned economic programs.
On September 25, the Armenian government approved the country's draft state budget for 2026. The document projects GDP growth at 5.4%, revenues at 3.09 trillion drams, expenditures at 3.6 trillion drams, and a deficit of 537 billion drams, or 4.5% of GDP. ($1 - 383.05 drams)
Central Bank of Armenia Chairman Martin Galstyan stated this during a discussion of the draft 2026 state budget.
In this regard, he emphasized the importance of the role and consistent increase in capital expenditures, which largely relates to the full and effective implementation of economic and infrastructure development programs.
"In 2026, fiscal policy will be guided by ensuring 5.4% economic growth, with an emphasis on fiscal consolidation and debt servicing, as well as maintaining the high level of economic potential built in recent years," Galstyan said. The head of the regulator also pointed out high external and internal risks in the context of significant geopolitical and economic uncertainty, concerning the stability of factors affecting economic potential and possible scenarios for economic prospects.
In terms of effective risk management, he emphasized the need to strictly limit the use of reserve funds.
"In the context of risks and uncertainties for economic growth prospects, ensuring the effectiveness and consistency of tax reforms in 2026 is a key factor," Galstyan added.
According to the head of the Central Bank, the primary focus of capital expenditures on strengthening economic infrastructure will stimulate economic potential and productivity and lay the foundation for the implementation of planned economic programs.
On September 25, the Armenian government approved the country's draft state budget for 2026. The document projects GDP growth at 5.4%, revenues at 3.09 trillion drams, expenditures at 3.6 trillion drams, and a deficit of 537 billion drams, or 4.5% of GDP. ($1 - 383.05 drams)
