Armenia Reaches a Level Where It Is Time to Activate a Second Engine

YEREVAN — Armenia’s economic activity index reached 8.3% in January–November, Prime Minister Nikol Pashinyan said at a government meeting, adding that, based on current assessments, economic growth for the full year will be at least 6%, with some partners not ruling out even higher growth.

The prime minister also addressed employment, noting that November 2025 marked a historic record for registered jobs in Armenia. In November, the country recorded 814,818 registered, salaried jobs, which is 275,465 more than in November 2017—an increase of nearly 50%.

Pashinyan added that the number of jobs also rose compared with November 2024, increasing by 31,986, or 4%. He also spoke about average wages, noting that in 2025 the average monthly salary stood at 327,155 drams, which is 158,421 drams (or 93%) higher than in November 2017.

According to the prime minister, wages also increased compared with November 2024 by 16,000 drams, or 5.1%. He noted that annual inflation, according to the Statistical Committee, amounted to 3.3%. It was also emphasized that the income tax rate has been reduced, contributing to the growth of citizens’ real incomes.

Pashinyan stressed that following the non-violent Velvet Revolution of 2018, Armenia’s gross domestic product has increased by approximately 50%.
“This is real economic growth,” he said. “This year’s growth indicators are also very important. We are essentially confident that we are meeting the revenue side of the 2025 state budget. This, too, is an important result.”

In this context, the prime minister once again expressed gratitude to all citizens working in Armenia, creating value, and paying their legally established taxes, as well as to members of the government and partners in the legislative branch for their work.

“These figures are the visible tip of the iceberg. Beneath them is work that deserves recognition,” Pashinyan said. “Once again, I want to remind you that compared to the revenue side of the 2017 state budget, the revenue side of the 2025 state budget has increased by 130%. In other words, in 2025 we have executed the equivalent of the entire 2017 budget, plus another full year’s budget, plus an additional 30%. This is work done on the ground, under the conditions and challenges we have gone through. All of this must ultimately be appreciated, because we have endured these trials and reached a point that should be assessed as positive and promising. I believe that the agenda of our state’s long-term sustainability, adopted in 2018, is now no longer just a dream or a vision, but a practical reality that we work on every day and must continue to pursue.”

Pashinyan also noted that a 50% transformation of the economy essentially means the emergence of a completely new economy, which, in his view, requires entirely new approaches. According to the prime minister, this indicates that the public administration system has performed significantly better.

“Therefore, it is very important that we have made a decision to launch a key pilot program to reform the system of salaries and remuneration within public administration,” he said. “As a result of improvements, this program will become an institutional system, followed by a comprehensive and detailed reform of the civil service. Next, we must also address the public procurement system. I state responsibly and confidently that the Republic of Armenia is now at a level where it is time to activate a second engine. This means that the public administration system must fully align with this logic in terms of job attractiveness, quality of work, and the continuous development of professional and technical competencies. This point and this logic have truly matured.”

Concluding his remarks, Pashinyan thanked his colleagues for their work throughout 2025, wished them success, and extended his congratulations on the upcoming holidays.