Armenia's state 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, the state 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, other 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 in the last five years have been mostly used effectively. According to him, thanks to these expenditures, it was possible to ensure accelerated GDP growth and support 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.
