Armenian government lowers GDP growth forecast for 2025 to 5.1%

YEREVAN, December 3. /ARKA/. The Armenian government has revised its economic growth forecast in the draft state budget for 2025, lowering it from 5.6% to 5.1%, Finance Minister Vahe Hovhannisyan said on Tuesday.

“Certain changes were made to the initial draft of Armenia’s state budget for 2025. Specifically, the indicators for GDP, revenue, expenditure, and the state budget deficit were revised,” Hovhannisyan said at a parliamentary session, presenting the final version of the country’s main financial document for the upcoming year.

According to him, in the revised draft of the state budget, the projected GDP is set at about 10.9 trillion drams, which is 158 million drams lower than the figure originally projected.

As the minister noted, state budget revenues are expected to total approximately 2.84 trillion drams, which is 35.5 billion drams less than the initial figure, with a decrease in tax revenues estimated at 39.6 billion drams.

According to the revised draft, state budget expenditures will decrease by 40.8 billion drams, totaling 3.4 trillion drams (of which 2.7 trillion drams are current expenditures and 734 billion drams are capital expenditures).

Figures and forecasts for the Armenian economy

The EDB forecasts Armenia’s GDP growth at 7.5% in 2024 and 4.2% in 2025. The World Bank expects Armenia’s economy to grow by 5.5% in 2024 and 5% in 2025. The IMF predicts 6% growth for Armenia’s economy in 2024 and 4.9% in 2025.

The EBRD forecasts economic growth in Armenia at 6.2% in 2024 and 4.8% in 2025. The ADB forecasts 5.7% for 2024 and 6% for 2025. 

According to the forecast by Fitch Ratings, Armenia’s economy is expected to grow by 6% in 2024 and 4.9% in 2025. S&P forecasts a 6.2% growth for Armenia in 2024, while the UN expects the Armenian economy to grow by 5.2% in 2024 and 4.8% in 2025. ($1 = 397.88 drams)

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