Yerevan, September 23, 2025
Armenia’s government under Prime Minister Nikol Pashinyan is leaving behind what experts call a “catastrophically bad legacy”: spiraling public debt, reckless spending, and no clear path to recovery.
Economist Nairi Sargsyan, head of the “Armenia is Me” initiative, warned that the country’s debt has jumped not by $1 billion, as officials claim, but by $1.5 billion in just half a year, pushing Armenia’s liabilities to nearly $13.8 billion.
“This debt brings no return,” Sargsyan told Sputnik Armenia. “If it were invested in factories or agriculture, at least part could be repaid. Instead, it goes into asphalt, government cars and summer residences. The public is left with higher taxes, inflation and no growth.”
A Heavy Bill for Citizens
With interest payments alone topping 400 billion drams annually (over $1 billion), Armenians are effectively saddled with $4,600 of debt per citizen.
Sargsyan calculates that the same money now flowing into debt service could have increased pensions by 50,000 drams monthly.
Instead, the public faces rising taxes, climbing interest rates, and shrinking credit opportunities – all while the government insists on new loans.
A Legacy of Decline
Sargsyan paints a grim picture of what Armenia’s next leaders will inherit:
“Even round-the-clock work will not be enough to undo the destruction of today’s government. Pashinyan has not only ruined the economy, he has undermined the very foundations of recovery. If the next government repeats his populism, Armenia will endure another five years of decay.”
According to official data, Armenia’s state debt reached 5.3 trillion drams by March 31, 2025 – a 5.8% increase in dollar terms since the start of the year.
