Armenia's public debt-to-GDP ratio in 2025 was 47.2%, stated Finance Minister Vahe Hovhannisyan. According to him, this indicator remains manageable, and the country is far from a level that could pose a serious threat to the economy. For comparison, in 2020, public debt reached 63% of GDP, and in 2021, it was 60%.
The minister noted that previously, fiscal policy was aimed at curbing current expenditures and reducing the debt burden below the 60% mark. Now, different fiscal rules are in effect that do not impose such restrictions. At the same time, the government continues to assess potential risks and reflects them in the medium-term expenditure program, budget documents, and relevant reports.
Hovhannisyan also believes that borrowed funds have been mostly used effectively over the past five years. According to him, these expenditures have ensured accelerated GDP growth and supported economic development and an increase in the welfare of the population. If inefficient expenditures are identified, the authorities intend to abandon them or change the approach to their financing.
