Armenia`s GDP growth for 2025 revised down to 5.1%

ArmInfo. Armenia's nominal GDP in 2025 is projected to be AMD 10 trillion 891.5 billion, which is AMD 158.6 billion lower than the initial forecast. Expectations for  economic growth have also been reduced by 0.5 percentage points - to  5.1%. This is stated in the law , which  was approved by parliament on December 5.

Compared to the draft state budget for 2025, approved by the Cabinet  of Ministers at the end of September 2024, revenue expectations for  the coming year have decreased by AMD 36 bln.  The total revenue is  now projected to be AMD 2 trillion 873.6 billion, with AMD 2 trillion  720.3 billion coming from tax revenues and state duties (2 trillion  759.9 billion in the original version). This is AMD 264.5 billion    more than initially expected by the end of 2024.

the  approved document says.  Expenses have been reduced by AMD 40.8  billion, totaling AMD 3 trillion 441.6 billion (3 trillion 076.5  billion drams for 2024). Of this amount AMD 2 trillion 706.8 billion  will be allocated for current expenses (a decrease of AMD 42.2  billion), compared to the expected AMD 2 trillion 437.2 billion by  the end of this year. Capital expenditures are set to reach AMD 734.9  billion (6.7% of GDP), slightly higher than the initial AMD733.2  billion (6.6% of GDP) and the projected 639.9 (6.3% of GDP) by the  end of 2024. The budget deficit, initially forecasted at AMD 609.4  billion or 5.5% of GDP, has been revised to AMD 604 billion (still  5.5% of GDP). The deficit will be covered by a combination of  internal and external sources, with AMD 255.4 billion and AMD 348.6  billion, respectively. By the end of this year, the indicator is  expected to reach AMD 482.9 billion.

The GDP deflator is expected to be  2.5% by the end of this year,  instead of the initial projections of 3.5% and 1.1%. The average  inflation in the approved document remained at 3.6% (compared to the  projected 0.4% by the end of 2024).

By the end of December 2025, Armenia's public debt is expected to  reach AMD 6 trillion 159 billion or 56.5% of GDP. This is slightly  higher than the initial projection of AMD 6 trillion 161 billion or  55.8% of GDP. By the end of 2024, the figure is projected to be AMD 5  trillion 272 billion.  The government debt is expected to reach AMD 5  trillion 910.4 billion ($13 billion 963.1 million) or 54.3% of GDP.  This is an increase from the AMD 5 trillion 038.5 billion ($12  billion 647.9 million) and 49.8% of GDP expected by the end of this  year.  In 2025, it is projected that 1 trillion will be needed just  to repay and service the government's debt. This includes AMD117.1  billion, with AMD 723 billion allocated for repayment, and AMD 394.1  billion for interest payments. A total of 3.6% of GDP will be set  aside for servicing the government's debt.

, the foreign exchange rates in AMD established  as of November 1 on the foreign exchange market of the Republic of  Armenia were applied,> the document says.  Thus, the following  picture emerged for the main currencies: the exchange rate of the USD  is AMD 387.17, the EUR - 420.51, the GBP- 499.95, the RUB - 3.95, the  CHF- 446.2, the CAD - 277.86, the JPY - 25.36, and the CNY - 54.35.