The Chairman of the Central Bank of Armenia Martin Galstyan announced a decrease in the country's economic dependence on private remittances from abroad.
At a press conference on June 3, where the financial stability report for 2023 was presented, Galstyan noted that the share of remittances in Armenia's GDP had significantly changed. Over 10 years ago, this share reached about 18%, while in 2023 it has substantially decreased.
According to the Central Bank, in 2023 the volume of remittances from abroad amounted to approximately $5.7 billion, which is $505 million (9.7%) more than the 2022 figure. The main countries from which remittances were received included Russia ($4.7 billion), the United States ($663 million), Switzerland ($141 million), Germany ($103 million), and the United Kingdom ($76 million).
Despite the record volume of remittances to Armenia last year, the outflow of funds was also significant, exceeding $4 billion. Thus, the net inflow of remittances reached about $1.7 billion, accounting for 4.1% of GDP.
Galstyan pointed to several reasons for the decreased economic dependence on remittances. Firstly, the wage gap between Armenia and Russia has narrowed due to rising wages in Armenia and the depreciation of the ruble. Secondly, the temporary influx of capital from Russia to Armenia in 2022 and 2023, driven by the Russia-Ukraine conflict, also had an impact.
According to Galstyan, the current situation is close to a normal state. In January-April 2024, international remittances to Armenia amounted to $1.67 billion, while the outflow for the same period reached $1.34 billion.
