Armenia's 2026 Budget Projects 5.4% Economic Growth

In 2026, a 5.4% economic growth is projected, and the Gross Domestic Product (GDP) will reach 11 trillion 934 billion drams, Minister of Finance Vahe Hovhannisyan presented the details at an extraordinary session of the National Assembly's Standing Committee on Financial-Credit and Budgetary Affairs. According to the draft, the main macroeconomic indicators of the state budget will be as follows:

• Revenues: 3 trillion 91 billion drams, of which 2 trillion 973 billion will be tax revenues. The Minister noted that "as a result of the improvement of tax administration, the fight against the shadow economy, as well as tax policy measures, it is expected to improve the taxes/GDP indicator by 0.4 percentage points."

• Expenditures: 3 trillion 628 billion drams, which will amount to 30.4% of GDP. Of this amount, 2 trillion 924 billion will be current expenditures, and 704 billion drams will be capital expenditures (5.9% of GDP).

• Deficit: 537 billion drams.

The Chairman of the Central Bank, Martin Galstyan, who was present at the discussion, highly praised the presented draft, emphasizing the importance of macroeconomic stability.

"Macro-stability has become the calling card of the Republic of Armenia. Reducing the budget deficit from 5.5 to 4.5 percent in a pre-election year is a very important signal for all possible partners and investors. We have high economic growth and low inflation," said Martin Galstyan.

As a result of the discussions, the committee, summarizing the observations, gave a positive conclusion to the 2026 state budget draft for its discussion at the plenary session of the National Assembly.