Poverty in Armenia declines, but so does disposable personal income

By Ani Avetisyan

In 2022, the level of poverty in Armenia, calculated according to the average poverty line, was 24.8%, compared to 26.5% of the previous year and decreased by 1.7%. In 2020, the figure stood at 27%.

The level of extreme poverty was 1.2%, compared to 1.5% the previous year, falling by 0.3%, according to the Statistical Committee, “Social picture of Armenia and poverty, 2023”. The figure for extreme poverty was more encouraging in 2020 — 0.7%.

More poor people live in the rural areas, the report shows. The poverty rate in the urban areas is 22.1%, and 29.0% in rural areas. In the meantime, the poverty rate in the villages decreased by 4% compared to 2021.

Those whose consumption per adult person was below the poverty line, which amounted to $69, are assessed as extremely poor or malnourished. Those whose monthly consumption is below the poverty line of $121 are considered poor.

In 2022, 2.0% of families stated that they had a problem providing food, 11.0% had a housing problem, and 2.3% had problems providing children with sufficient education.

To the question “How much money is needed for your family to live very well?” they answered about $642; for living well — about $338; for survival — about $138.

At the same time, the disposable personal income in the families declined after years of steady increase. According to the Statistical committee’s report, the decline stood at around 3%, from $188 to $185 monthly. The disposable personal income includes salaries and other passive incomes.

Armenian minister of economy refused to comment on the decline, saying that he has not yet checked the report.

Improving the quality of life of people has been one of the main promises by the Armenian government since they came to power in 2018.

Additionally, according to the report, the average nominal wage in the country stood at around $585 in 2022, around $75 higher than in 2021. In the 2023’s nine months, the average nominal wage in the country was about $658.

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