Thursday, September 10 2026 12:44
Alina Hovhannisyan

Central Bank: Improving the basic skills of future generations could bring Armenia benefits equivalent to five times its annual GDP

Central Bank: Improving the basic skills of future generations could bring Armenia benefits equivalent to five times its annual GDP

ArmInfo. Armenia’s main task is not only to develop new educational potential, but also to transform the existing motivation, supportive environment and use of technology into effective learning and measurable skills. This is stated in a study by the Central Bank of Armenia (CBA) entitled: <Untapped Educational Potential: What the PISA Assessment Shows for Armenia>.

It should be noted that PISA is a study conducted by the OECD every three years that assesses the extent to which 15-year-old students are able to

apply the knowledge acquired at school to solve practical problems. This year, Armenia participated in the study for the first time (6,804 15-year-old students from 293 schools).

Citing the PISA results, the CBA noted that compared with OECD countries, students in Armenia have an attitude toward learning that is no less positive and, according to some indicators, even more favorable. 72% of students report that they are curious, which is practically in line with the OECD figure, while 65% make additional efforts when a task becomes more difficult, compared with 60% in OECD countries. At the same time, only 15% of students in Armenia consider school a waste of time, compared with 24% in OECD countries. Most students also report taking an independent approach to learning and seeking help when necessary: around 60% plan their studies, 58% try to check whether they have understood the material, and 82% turn to a teacher when necessary.  <The combination of this positive picture with low academic performance suggests that the problem lies not only in student motivation or teacher-student relations. There are more fundamental constraints in the learning environment: 49% of students study in schools where a lack of material resources impedes the learning process, while 39% study in schools with infrastructure problems. Attendance is a particularly acute issue: during the two weeks preceding the assessment, 58% of students in Armenia missed at least one full school day, while 59%  missed at least one class. By comparison, the corresponding figures in OECD countries were 22% and 24%.

The same untapped potential is also evident in the digital environment. In Armenia, students use digital devices at school for educational purposes for an average of 2.2 hours per day, compared with 1.7 hours in OECD countries, while 49% use artificial intelligence chatbots at least once a week.  However, the average score in digital problem solving is just 354 points, compared with an OECD average of 500, which means that the availability and use of digital technologies have not yet translated into corresponding digital, analytical and problem-solving skills>, the source states.

It should be noted that Armenia’s results in all four areas are significantly below the OECD average. In science and reading, the difference is 113 points, while in mathematics  it is 87 points. According to the approximate comparison used in PISA, a difference of 20 points corresponds to progress over one school year. Thus, the difference between Armenia’s results and the OECD averages in the main areas is equivalent to approximately 4-6 years of learning deficit.

In digital problem solving, the gap is even larger: Armenia’s average score is 354 points, compared with the OECD average of 500 points. Moreover, Armenia’s result is approximately 42 points below the level that could be expected based on its science results. This indicates that weak performance in digital problem solving is explained not only by the overall low level of academic achievement, but also by a more systemic deficit in digital and computational skills.

These differences are also reflected in Armenia’s ranking positions: in science, the country ranks 79th among 91 participants; in reading  it ranks 79th (out of 90); in mathematics  73rd (out of 90); and in digital problem solving  83rd (out of 85). Overall, Armenia is in the bottom quarter among participating countries in all areas, while in digital problem solving it is among the countries with the lowest results.  In addition, in Armenia, 58.1% of 15-year-old students do not reach the basic Level 2 in at least one of the areas, whereas in OECD countries this figure is 19.7%. Students who do not reach this level experience difficulties, for example, when reading data from a simple graph or understanding a simple relationship between price and quantity.  At the same time, the share of high-performing students (Level 5 or 6) in Armenia is just 0.8%, compared with 11.9% in OECD countries, placing the country 69th on this indicator.

Low academic performance is widespread, with relatively small but noticeable socioeconomic and gender differences According to the CBA, international economic studies show that the cognitive skills of the population, or <knowledge capital>, are closely linked to countries’ long-term economic growth (Hanushek and Woessmann,

2012). A higher level of basic skills over time translates into a more productive workforce, a greater ability to master new technologies and implement innovations, as well as higher incomes. In this sense, PISA is not only an assessment of the current state of the education system, but also an early indicator of the quality of the future workforce, productivity and the country’s long-term growth potential.

The Central Bank also addressed in its study the impact on economic growth, which  is assessed based on the fact that improving educational outcomes does not lead to an immediate increase in the quality of the entire workforce. Generations with a higher level of skills gradually enter the labor market, increase their share of the workforce and over time raise economic productivity and the level of GDP.  Therefore, the impact is assessed over an 80-year horizon by comparing future GDP values with and without improved skills.

According to the CBA’s estimate, if future generations achieve at least the basic level of skills, the present value of the long-term economic benefits from this could amount to approximately five times Armenia’s current annual GDP.

It should be recalled that PISA is a study conducted by the OECD every three years that assesses the extent to which 15-year-old students are able to apply the knowledge acquired at school to solve practical problems.

 

The study conducted in 2025 includes four main areas: science, reading, mathematics and digital problem solving (computational problem solving), which was included in the study for the first time.