Armenia Targets 5.8% Economic Growth in 2027 Budget

YEREVAN — Armenia’s fiscal policy for 2027 will aim to achieve economic growth of 5.8 percent while strengthening the country’s competitiveness, economic resilience, and debt sustainability, Central Bank Governor Martin Galstyan announced during discussions on the draft state budget in the National Assembly.

Presenting the Central Bank’s assessment of the proposed 2027 budget, Galstyan said the government’s fiscal strategy seeks to maintain high levels of investment in economic and security infrastructure, human capital, and physical assets, while implementing structural reforms to expand Armenia’s long-term economic potential.

According to Galstyan, the government estimates that Armenia’s potential economic growth rate has increased in recent years and currently stands between 5 and 5.5 percent.

However, he cautioned that several temporary factors that contributed to the country’s strong economic performance in previous years are gradually diminishing.

Maintaining sustainable and robust economic growth, he explained, will therefore depend increasingly on policies aimed at improving productivity, stimulating exports and private investment, and creating a more favorable investment environment.

“Fiscal policy in 2027 will be guided by the objective of achieving 5.8 percent economic growth, combining continued fiscal consolidation and stronger debt sustainability with policies that promote human capital development and further expand the economy’s growth potential,” Galstyan said.

The Central Bank governor emphasized that the effective implementation of structural reforms and investment-oriented policies will be essential to sustaining economic growth as the impact of earlier temporary growth drivers fades.