Between 2017 and 2025, Armenia recorded about eight consecutive years of economic growth, averaging roughly 5.7% annually, yet poverty levels declined only marginally.
According to former Chairman of the Central Bank of Armenia Bagrat Asatryan, when sustained economic growth does not translate into a significant reduction in poverty, it reflects weak social policy.
He noted that during these years state budget revenues increased substantially and the average wage rose by about 1.7 times, while pensions and social benefits largely remained unchanged or grew only slightly. At the same time, cumulative inflation reached about 25–30%, meaning a significant share of the population dependent on social payments was unable to cross the poverty line and in some cases became poorer.
Asatryan stresses that the problem is not limited to social policy alone. Economic growth in Armenia remains highly concentrated in a few sectors that are not inclusive and do not ensure broad participation in economic processes. The increase in employment recorded in official statistics, he says, is largely the result of formalising previously shadow employment rather than creating genuinely new jobs.
The former central bank head notes that the government’s economic development strategy is built around key priorities — attracting investment, improving industrial competitiveness and technological capacity, developing small and medium-sized enterprises, and enhancing the business environment. However, progress in these areas remains insufficient and directly affects the social conditions of vulnerable groups.
Asatryan emphasises that economic growth itself is positive and the expansion of Armenia’s economic scale is an important achievement, but development must be inclusive. Groups living near the poverty line or relying mainly on social payments cannot fully benefit from education, development, and future-oriented opportunities and often remain outside active economic circulation.
According to the expert, the challenges are broad and include social policy, education quality, limited opportunities for low-skilled workers, and the long-term effects of labour migration. These issues have been raised for years, yet solutions remain incomplete, resulting in uneven distribution of economic growth benefits across society.