Category: News

Armenia’s public debt stood at 41.3% of GDP during the first five months of this year, down from the end of 2025, although it could rise to around 50% in the second half of the year, Armine Manukyan, Senior Economist at the World Bank Group, said while presenting the report Armenia Economic Update: Pursuing Poverty-Reducing Growth Through More Effective Fiscal Policies on July 29.

“In the 2025 budget, the fiscal deficit was projected at around 5.5% of GDP, but the year ended with a deficit of 3.8%. This was mainly due to savings in current expenditure and some underexecution of capital spending, although capital expenditure has increased significantly in recent years. During the previous decade, capital spending averaged around 3% of GDP, whereas it is now about 6%. A very ambitious target had been set, and the capital expenditure programme was therefore not fully implemented.

“There was also strong tax revenue collection, which resulted in a smaller deficit. During the first five months of this year, the budget deficit had been projected at 1.7% of GDP, but it stood at 0.2%. This was mainly due to lower-than-planned capital expenditure. Capital spending is expected to increase in the second half of the year,” Manukyan said.

She noted that budget revenues increased by 15%, mainly due to higher value-added tax (VAT) and personal income tax receipts. According to Manukyan, the number of income taxpayers has risen alongside growth in salaried employment, while higher wages have also contributed to stronger personal income tax collection.

Manukyan said Armenia’s public debt amounted to 41.3% of GDP during the first five months of the year, lower than at the end of 2025.

“However, we expect it to increase in the second half of the year, driven by capital expenditure and the budget deficit, reaching around 50%,” she said.

Commenting on inflation, Manukyan noted that there was no price growth in Armenia in 2024, but prices began to rise the following year, with inflation accelerating further this year.

“Inflation has mainly been driven by food and non-alcoholic beverages, largely due to higher prices on international markets. It has also been influenced to some extent by the depreciation of the Armenian dram against the Russian rouble, as Armenia imports most of its goods from Russia.

“Healthcare costs have also increased to some extent since 2025. Transport prices are another contributing factor. We expected increases in transport and energy prices to have a stronger impact on inflation in Armenia, but compared with other countries, the effect has so far been more limited,” the economist said.

Armenia’s Minister of Education, Science, Culture and Sport, Zhanna Andreasyan, has received members of the national shooting team after their historic performance at the World Moving Target Shooting Championships held in Estonia from July 20 to 26.

According to the Ministry of Education, Science, Culture and Sport, the Armenian team won a total of nine medals—five gold, one silver and three bronze—and produced the country’s first-ever world champions in the discipline.

The meeting was also attended by Narine Shahbazyan, Head of the Ministry’s Sports Policy Department, and Areg Saribekyan, Secretary General of the Shooting Federation of Armenia.

Congratulating the athletes, Andreasyan described their achievement as a landmark in Armenia’s sporting history, noting that the team’s international success reflects the steady and qualitative development of shooting in the country.

“I believe your success marks another important milestone in Armenia’s sporting history. What you have achieved has already become part of history, and I am very pleased that we have reached such a result,” Andreasyan said, thanking the athletes, coaches and the Shooting Federation of Armenia for their consistent efforts.

The minister also highlighted the extensive joint work carried out to organise this year’s European Shooting Championships, saying the event had been successfully staged despite numerous organisational challenges and had received positive feedback from international partners. She added that investments made in shooting infrastructure for the championships were already yielding tangible results.

Speaking about the government’s sports policy, Andreasyan said that under a recent government decision, the state will finance training for children attending private shooting ranges. She also noted that discussions are underway on the possibility of incorporating shooting into the school physical education curriculum, citing the sport’s role in developing concentration and other important skills.

Andreasyan further referred to major international sporting events scheduled to be hosted by Armenia next year, stressing that the country continues to strengthen its position as a venue for international competitions. In this context, she said the possibility of hosting another international shooting tournament in Armenia would be considered.

Shooting Federation of Armenia Secretary General Areg Saribekyan said state support had become increasingly tangible in recent years, while investments made ahead of the European Championships had significantly contributed to the national team’s preparation and its results at the World Championships.

National team member Lilit Poghosyan also thanked the ministry for the reception, saying the team had sought to achieve the best possible results at the World Championships following the European Championships in Yerevan to demonstrate that the state’s efforts had not been in vain.

Armenia competed in the World Championships in Estonia with a 12-member squad.

In the senior competition, Hayk Minasyan and Gor Khachatryan claimed individual world titles. In the team event, Minasyan, Khachatryan and Hovhannes Margaryan won gold in the 50-metre running target normal run event.

Among the juniors, Aida Azatyan delivered an outstanding performance, becoming a two-time junior world champion.

Armenia also secured team medals in other events. The men’s team of Minasyan, Khachatryan and Margaryan won silver in the mixed run event.

Hayk Minasyan earned an individual bronze medal, while the same trio added two further bronze medals in the team competitions of the 50-metre mixed run and normal run events.

Armenia’s Human Rights Defender Anahit Manasyan visited the Ministry of Defence’s Yerevan Garrison Hospital on July 29, the Ombudsperson’s Office said.

During the visit, Manasyan toured the hospital, met with servicemen receiving treatment in the psychiatric ward, reviewed their health conditions and treatment progress, and inspected the hospital’s facilities.

She particularly stressed the need to improve the infrastructure and conditions of the psychiatric ward.

The hospital’s management and medical staff discussed a number of issues related to medical care provided to servicemen, as well as the organisation of the psychiatric ward’s work. Manasyan underscored the importance of fully ensuring servicemen’s right to receive medical treatment in dignified and appropriate conditions.

As part of the visit, the Ombudsperson held private meetings with servicemen in the ward. Discussions focused on medical care, living conditions, and potential issues arising during military service, as well as possible solutions. A psychiatrist from the Ombudsperson’s Office also participated in the visit.

Particular attention was given to reports circulated on social media concerning the rights of conscript serviceman A.H. Manasyan, accompanied by the staff psychiatrist, held a confidential meeting with the serviceman and listened to the issues he raised.

Medical records were also reviewed. The Ombudsperson’s Office said all matters concerning the serviceman are currently being addressed by the relevant authorities within their respective competencies, and that the case remains under the Ombudsperson’s direct supervision.

The office said it would provide additional publicly disclosable information after completing its review.

The Ombudsperson’s Office also noted that servicemen and their family members can contact the Human Rights Defender regarding rights-related issues by calling the 116 hotline, or 096 116 100 outside working hours and on non-working days.

They may also apply in person at the Human Rights Defender’s Office (56A Pushkin Street, Yerevan) or by email at [email protected].

Armenia’s Greco-Roman wrestling team member Janes Nazaryan has won the gold medal at the U17 World Wrestling Championships.

Competing in the 71 kg final of the tournament in Baku, Azerbaijan, Nazaryan defeated Aslan Dzuev by 4-3 to claim the world title.

Azerbaijani President Ilham Aliyev has signed a law approving the agreement between the Republic of Azerbaijan and Ukraine on legal assistance in civil and commercial matters.

 The Azerbaijani news agency APA reported that the agreement was signed in the city of Gabala, Azerbaijan, on April 25, 2026.

Russian President Vladimir Putin and Azerbaijani President Ilham Aliyev discussed the intensification of dialogue between the two countries’ government bodies during a telephone conversation.

The Kremlin press service reported that, after discussing current issues on the bilateral and international agenda, the leaders noted the constructive nature of Russian-Azerbaijani relations and the increasing dialogue between the two governments and relevant agencies. 

Putin and Aliyev also reaffirmed their commitment to further expanding mutually beneficial cooperation between the two countries.

Earlier, Putin held a telephone conversation with Armenian Prime Minister Nikol Pashinyan.

Iraqi Prime Minister Ali Faleh al-Zayidi has travelled to Ankara on an official visit, where he is scheduled to meet Turkish President Recep Tayyip Erdoğan and other senior Turkish officials.

Turkish media reported that the Iraqi prime minister arrived in Türkiye accompanied by a high-level delegation.

The talks are expected to focus on expanding cooperation between Türkiye and Iraq, particularly in the areas of the economy, water resources management, security and investment. 

The sides are also expected to discuss regional issues of mutual interest, mechanisms for implementing existing bilateral agreements and memoranda of understanding, as well as progress on joint infrastructure projects and their further development.

The United States and the United Arab Emirates (UAE) are establishing a working group to advance the military application of artificial intelligence (AI), according to the US Central Command (CENTCOM).

 “On July 28, CENTCOM announced an agreement with the UAE to establish the first bilateral working group aimed at accelerating the development of AI applications for military purposes,” the command said in a statement, as cited by TASS.

 According to CENTCOM, the working group, named Talon Synapse, will be based in Abu Dhabi and will consist of around 20 specialists.

The project is expected to be officially launched in the coming weeks. Talon Synapse will focus on integrating AI applications to support intelligence, protect critical infrastructure and monitor the regional security environment.

US President Donald Trump’s meetings with Israeli Prime Minister Benjamin Netanyahu and Ukrainian President Volodymyr Zelenskyy were positive and productive.

White House Press Secretary Karoline Leavitt said in a post on X that “both meetings were positive and productive.” 

Leavitt did not provide further details, saying only that both meetings had concluded.

Spanish MP Jon Iñarritu believes that the deepening of relations between Armenia and the European Union is a natural and continuing process, but that Yerevan’s European path requires careful political calculation.

He said that, should Armenia apply for EU membership in the future and meet the necessary conditions, Brussels should assess the application on its merits.

In an interview with Armenpress, Iñarritu discussed key issues on the Armenia-EU agenda, stressing that Yerevan must take the regional balance of power into account, as closer ties with Europe could create new opportunities while also generating tensions, particularly in relations with Russia.

In your opinion, what is the reason for the current unprecedented activation of Armenia-EU relations and the deepening of cooperation, how would you assess the current level of these relations? 

Given the resolutions adopted by the European institutions, as well as the initiatives taken by the Armenian Parliament, it is only natural that relations between Armenia and the European Union continue to deepen. We should also remember Armenia’s long-standing historical and cultural ties with Europe, together with the important role played by the Armenian diaspora in many EU Member States. These communities have often acted as a bridge between Armenia and Europe. Ultimately, the future of this relationship should be decided by the Armenian people. If they decide to move closer to the European Union, that choice should be respected. If, in the future, Armenia formally applies for membership and fulfils the necessary conditions, then the European Union should assess that application on its merits, like any other candidate country.

The President of the European Commission visited Azerbaijan and Armenia on July 2. To what extent is Ursula von der Leyen’s visit symbolic and to what extent of practical significance, what can it bring to bilateral relations? 

I believe the visit was intended, above all, to reaffirm the European Commission’s commitment to stability, dialogue and lasting peace in the South Caucasus. Its significance was both symbolic and practical. It sent a clear message that the European Union intends to remain actively engaged in the region, while also creating an opportunity to deepen political dialogue, encourage regional cooperation and explore new areas of economic, institutional and diplomatic cooperation with Armenia. We have seen similar messages from other European leaders. During his recent visit to the region, the German President also underlined the importance of concluding a peace treaty between Armenia and Azerbaijan. That shows there is a broad European consensus that a lasting peace agreement is essential for the stability and prosperity of the South Caucasus.

In your opinion, how can the activation of Armenia’s European direction change the balance of power in the South Caucasus? 

A stronger European orientation on Armenia’s part could contribute to a gradual diversification of political and economic influence in the South Caucasus. Traditionally, the region has been strongly shaped by Russia, while Turkey and Iran have also played significant roles. Greater European engagement would introduce an additional partner capable of supporting institutional reform, economic development, regional connectivity and diplomatic dialogue. However, this process would need to be managed with considerable care. A closer relationship between Armenia and the EU could provide Yerevan with greater strategic autonomy, but it might also generate tensions with other regional powers, particularly Russia. We should not forget the lessons learned from Ukraine. The ultimate effect on the regional balance will therefore depend on whether Armenia’s European rapprochement is perceived as a cooperative process that contributes to regional stability, rather than as part of a wider geopolitical confrontation.

Do you consider it possible for Armenia to successfully maintain a balanced foreign policy while simultaneously deepening relations with the EU and maintaining cooperation with Russia? 

To be entirely honest, I believe this would be extremely difficult. Russia has traditionally regarded the South Caucasus as part of its sphere of influence, and previous attempts by countries such as Georgia to move closer to the West have had serious consequences. The war in Ukraine has made these geopolitical tensions even more evident. Could Armenia face similar pressure? We cannot ignore the lessons learned from Ukraine, nor forget that Armenia has already paid a very high price in Artsakh. The European Union is not NATO, and closer relations with Brussels should not automatically be interpreted as a military or security realignment. However, we should also remember that Turkey is a key member of NATO and a major regional actor, which inevitably adds another layer of complexity to Armenia’s strategic choices. Nevertheless, I fear that Vladimir Putin’s Russia would not look favorably upon a decisive Armenian shift towards Europe. Armenia cannot change its geographical location and must take the regional balance of power into account. At the same time, it is a sovereign state and must be free to determine its own future. These two principles are not contradictory, but Armenian policymakers will need to assess all the relevant political, economic and security considerations with great caution.

To what extent can the economic support packages and trade privileges announced by the EU change Armenia’s economic opportunities? 

I believe these measures could provide a significant economic boost and create valuable opportunities for both Armenia and the European Union. They could facilitate investment, improve access to European markets, support infrastructure and institutional modernisation, and encourage the development of new sectors in the Armenian economy. More broadly, such initiatives could help build lasting partnerships and lay the foundations for future joint projects. The benefits need not be limited to Armenia alone; they could also contribute to greater prosperity, connectivity and stability throughout the South Caucasus, while strengthening the EU’s economic and political presence in the region. That said, we should not overlook the fact that Russia remains Armenia’s main economic partner and that Armenia is a member of the Eurasian Economic Union. These are structural realities that cannot be ignored, and any further rapprochement with the European Union will have to take them into account.