In 2023, Armenian families experienced significant real income growth for the first time in recent years. “The average household income increased by 15.3%, reaching $840 per month,” reports economist Agasi Tavadyan, founder of the analytical portal tvyal.com and an expert at the Amberd Research Center.
According to Tavadyan, this was made possible by a unique combination of economic growth and price stability, with the country recording deflation of -0.6% for the first time in a long while.
"The growth was especially pronounced among the least affluent segments of the population," notes Tavadyan. He states that incomes of the poorest citizens rose by 23.2%, reaching $297 per month. Meanwhile, the incomes of the top 10% wealthiest individuals increased by 14.5%, climbing to $1,946.
The expert's analysis revealed notable changes in income distribution among the population. Over one-third of households (35.1%) now fall into the middle-to-upper-income bracket ($650–$1,300), signaling the strengthening of the middle class. “Remarkably, only 2.6% of households earn more than $2,538 per month, while 2.7% still live on less than $162 per month,” Tavadyan highlights.
Regional inequality remains a concern. While the average income in Yerevan rose by 15%, consistent with the national average, the situation in most regions is less favorable. Tavadyan’s calculations indicate that between 2020 and 2023, real household income growth was only observed in the capital and two regions—Aragatsotn and Gegharkunik.
The economist notes that the current growth stands out compared to previous years. In 2022, despite impressive economic growth of 12.6% and an increase in GDP per capita from $4,972 to $7,018, high inflation of 8.3% effectively reduced real incomes.
"An analysis of data since 2005 shows that the most significant growth in real incomes occurred in 2006–2007 and 2019," Tavadyan points out. He attributes the 2023 growth to a combination of economic expansion and price stability, which allowed nominal wage increases to directly enhance household welfare.
Despite the positive trends, the expert warns of persistent structural challenges in the country’s economy that demand attention: high poverty levels in rural areas, significant income inequality, and a pronounced gap between the capital and the provinces.
