According to the latest data from July 2024, Armenia has emerged as the leader in average monthly salaries in the region, surpassing even Russia. The average post-tax salary in Armenia is $637, which is 8.1% higher than Russia's $589.
Agasi Tavadyan, an economist and the creator of tvyal.com, notes that this figure is largely due to the high concentration of population and jobs in Yerevan. "47% of Armenia's population resides in the capital region, and 76% of private sector jobs are concentrated in Yerevan. This creates significant inequality between urban and rural areas," he said in an interview with BMG.
Tavadyan highlights that the concentration of jobs in Yerevan continues to grow. In 2022, private sector employment in Yerevan increased by 19.5% compared to just 4.7% in the regions. It is expected that Yerevan's share of private sector jobs could reach 80%.
However, the high salaries in dollar terms are partly explained by the strengthening of the Armenian dram, which has appreciated by 20% against the dollar since early 2022. This has negatively impacted exports, tourism revenues, and the IT sector.
Despite the high salaries, Armenia faces the issue of a high cost of living. Average monthly expenses per person (excluding rent) amount to $732, the highest in the region. "The wage-to-expense ratio in Armenia is 87%, meaning that the average salary covers only 87% of average expenses," the expert notes.
In comparison, this ratio is 111% in Russia, allowing the average Russian not only to cover expenses but also to save. "In developed countries like the U.S., Germany, and Singapore, this figure exceeds 300%, indicating a significantly higher purchasing power," Agasi Tavadyan concludes.
