Armenia's Finance Minister, Vahe Hovhannisyan, has presented alarming data regarding the state of remittances to the country for the first half of 2024.
According to the report, which was disclosed during a session of the Parliamentary Commission on Financial, Credit, and Budgetary Affairs on September 2, the net inflow of remittances to Armenia has decreased by 48.3%.
The most significant drop has been observed in remittances from Russia. Hovhannisyan highlighted that the net inflow of non-commercial remittances from Russia has fallen by 69.4%, contributing the most to the overall negative trend.
This substantial decline in financial inflows could have serious consequences for Armenia's economy. Remittances have traditionally been a vital source of income for many Armenian families and play a crucial role in sustaining domestic consumption.
Previously, BMG reported that the total volume of remittances to Armenia in the first six months of 2024 amounted to $2.52 billion, marking a 13.7% decrease compared to the same period last year.
An even more pronounced reduction is evident in the net inflow of funds, which represents the difference between the total inflow and outflow.
The majority of remittances to Armenia come from just two countries—Russia and the United States—together accounting for 78% of all transfers, highlighting the economy's heavy reliance on economic ties with these nations.
