Armenia's Public Debt Projected to Hit 54% of GDP in the Medium Term

Armenia's public debt is expected to reach up to 54% of GDP by 2027-2028, according to the country’s Finance Minister Vahe Hovhannisyan.

Speaking during discussions on the draft state budget for 2026 at the Armenian parliament's Standing Committee on Financial-Credit and Budgetary Affairs, Hovhannisyan noted that last year, the debt-to-GDP ratio stood at 48%, and it is expected to reach 50.7% by the end of next year, The Caspian Post reports citing local media.

The minister highlighted that this year, the debt has increased due to the issuance of additional bonds in both national and foreign currencies. By the end of 2025, the government's debt is forecast to reach $14.1 billion, up from $12.3 billion at the end of 2024, he added.

Hovhannisyan also pointed out that Armenia's budget deficit for 2025 is expected to amount to 5.5% of GDP, or approximately 600 billion drams (around $1.56 billion). By 2028, the government aims to reduce the deficit to 2.8% of GDP.