The state of Armenia’s public finances has significantly improved, leading to sustainable economic growth and effective management of public finances, as highlighted in a new report by the Reconstruction and Development Bank (RDB) of the European Bank for Reconstruction and Development (EBRD). This positive development has enabled the expansion of support for social expenditure during the last quarter of 2023. The increase in public spending, coupled with the integration of defense spending, has contributed to the overall economic development of the country. However, it is important to note that the risks associated with external debt, particularly with respect to defense spending, are primarily influenced by international political uncertainty. Looking ahead, the GDP growth in Armenia is projected to reach 6.2 percent in 2024, gradually decreasing to 4.8 percent by the end of 2025.

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