ArmInfo. The Ministry of Finance has conducted a study on the impact of public debt on Armenia's economic development, applying a model based on the methodology proposed by the International Monetary Fund, as stated by Vahe Hovhannisyan during a government hour in the National Assembly on December 3, in response to a question from Babken Tunyan, a member of parliament from the ruling Civil Contract faction.
According to the Minister, the study showed that investing one unit of public debt in capital expenditures results in a return of 1.4 units. Taking into account the funds raised over the past few years, which are reflected in the size of the public debt, compared to the GDP growth rate, the country's economic growth rate during this period, should have been 26.9%. However, in reality, since 2018, this figure has exceeded 40%.
Therefore, the Minister continued, the public debt has ensured significant, above-average economic growth. Moreover, the high economic growth rates have led to the generation of sufficient additional income to repay the public debt within 1.5 years.
It should be noted that Armenia's public debt as of September 2025 reached approximately $13.8 billion (over 5.3 trillion drams), and by October 2025, it had increased to $14.2 billion.
