Armenia’s budget deficit in 2025 will not exceed 5%, and public debt will be within 50% of GDP – Ministry of Finance

YEREVAN, December 3. /ARKA/. At the end of 2025, Armenia’s state budget deficit will not exceed 5% instead of the planned 5.5%, resulting in public debt not exceeding 50% of GDP, Armenian Finance Minister Vahe Hovhannisyan announced Wednesday in parliament during the final discussion of the 2026 budget.

“We are entering 2026 more confident than ever – with a stable economy, a manageable and stable level of public debt, and great confidence in the future,” he said.

Hovhannisyan noted that the reforms being implemented will continue to yield results.

In its November “Armenia Monthly Economic Update,” the World Bank noted that Armenia’s cumulative budget deficit from the first to third quarters reached 0.73% of the annual projected GDP, compared to the 2025 target of 5.5% of GDP.

Armenian Finance Minister Vahe Hovhannisyan previously stated that the budget deficit is planned to be reduced from 5.5% to 4.5% in 2026, to 3.5% in 2027, then to 2.8%, and then to 1% by 2030.

He also noted that the public debt-to-GDP ratio will stabilize in the 50-60% range in the medium term.

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