Fitch Ratings Predicts Armenia to Meet 2026 Budget Deficit Target of 4.5%
Fitch Ratings anticipates that Armenia will achieve its 2026 budget deficit target of 4.5%, although it predicts deficits will exceed the medium-term goal of 3.5% starting in 2027, with an estimated 5.0% deficit for 2025. The 2026 budget includes reduced defense spending and increased healthcare funding, while the Finance Minister aims to lower the deficit to 3.5% in 2027, 2.8% in 2028, and 1% by 2030.
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Fitch Ratings expects the Armenian government to meet its 4.5% budget deficit target in 2026 but forecasts deficits above the medium-term target of 3.5% starting in 2027. The 2025 deficit is estimated at 5.0% of GDP.
Armenia's 2026 budget includes a 4.5% deficit, reduced defense spending, and increased healthcare funding. The cumulative deficit for January-October 2025 reached 2.1% of projected annual GDP, with significant realization in October. The Finance Minister plans to reduce the deficit to 3.5% in 2027, 2.8% by 2028, and 1% by 2030.
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