2 minute read
Member of Parliament Narek Karapetyan, head of the opposition “Strong Armenia” faction, said in parliament on Friday that he sees a need for a radical change in Armenia’s economic model, arguing that the economic growth recorded in recent years has not resulted in qualitative changes.
Karapetyan made the remarks during a confirmation hearing on MP Babken Tunyan’s candidacy for chair of the Standing Committee on Economic Affairs.
“Poverty is knocking on the doors of 600,000 people in our country. Over the past eight years, up to 2024, the poverty rate has decreased by only 2–3%, while the country has attracted $7–8 billion in new loans,” Karapetyan said.
He argued that a significant portion of the roughly 5 trillion drams in GDP growth recorded in recent years has coincided with increases in government debt and citizens’ loan obligations.
“Approximately half of the total economic growth—around 2.5 trillion drams out of 5 trillion—comes from loans taken out by the population, while around 2.4 trillion comes from loans taken out by the government. Unfortunately, there has been no qualitative change in our economy,” the faction leader stated.
Karapetyan also addressed the state of agriculture, noting that, according to official statistics, the sector recorded a decline in the first half of 2026.
“A radical change in the economic model is necessary. With this model, we will end up like Lebanon,” he said, warning that rising public debt and dependence on temporary external factors are creating long-term risks.
According to Karapetyan, Armenia’s economic activity is currently being supported by high copper prices and financial inflows from other countries resulting from the Russia-Ukraine war. However, he stressed that both factors are temporary.