Armenian debt-to-GDP ratio stays below 50% in 2024

PanARMENIAN.Net - Finance Minister Vahé Hovhannisyan presented the main macroeconomic indicators, revenue composition, tax and customs policy, expenditures, and deficit during the annual review of the 2024 state budget performance in the National Assembly.

According to Hovhannisyan, fiscal policy in 2024 was implemented under relatively lenient extrabudgetary rules, as the government's debt-to-GDP ratio remained below the 50% threshold. With the ratio falling within the 40–50% range, capital expenditures exceeded the state budget deficit by approximately 181.7 billion drams.

“The 2024 tax-to-GDP ratio stood at 23.6%, showing a slight decrease from the previous year. This was due to structural changes in the economy, including a reduced role for imports oriented toward domestic consumption and a rise in exports,” the minister said.

He added that capital spending reached 5.5% of GDP, which enabled adequate financing of national security and key infrastructure programs.

According to Hovhannisyan, the budget deficit remained at a level that allowed the government to keep public debt within manageable limits. Armenia’s debt-to-GDP ratio this year was 48%, staying under the 50% benchmark.