The Armenian government is optimistic about economic growth, expecting it to reach around 6% by the end of the year. Despite tax revenues falling short of projections in the first half of 2024, the figures show an improvement compared to the previous year. The government has increased capital expenditures by 40 billion drams in the first half of the year, with over 20 billion drams allocated to the defense sector alone. By year-end, the state debt is expected to be around 50% of the GDP.
Finance Minister Vahe Hovhannisyan praised the budget execution, highlighting the government’s strong performance in expenditures. He mentioned the continuous improvement in planning and the prudent allocation of funds, including a significant reserve fund of 55 billion drams for potential risks.
The economy has experienced positive growth in recent years, driven by factors like increased exports and Russian investments. However, the government is readjusting its growth projections to around 6% for 2024, down from the initial 7% target.