ArmInfo.According to different estimates, Russia could see a 6% to 10% economic decline this year, which cannot but affect Armenia as Russia is Armenia's major trade partner, Meri Hovsepyan, an expert at the Amberd research center told reporters.
A 1% economic decline could cause a 0.7% economic decline in Armenia.
"In case such a pessimistic scenario unfolds, Armenia's economy will show a decline of 4% to 6%," Ms Hovsepyan said.
The unprecedented sanctions against Russia have affected almost all the fields. About 150 large transnational corporations announced their leaving Russia or suspending their activities. It will cause soaring unemployment frozen investments amounting to billi8ons of dollars
Karlen Khachatryan, Head of Chair of Management and Business, Faculty of Economics and Management, Yerevan State University, said that it will inevitably cause a reduction in money transfers to Armenia, with Russia's share being 40%.
"Many people in Armenia are living thanks to money transfers. The economic problems in Russia, job losses will affect money transfers and, therefore, domestic consumption, with other ensuing negative consequences," Mr Khachatryan said.
In 2021, money transfers to Armenia from Russia totaled $865.6mln, with transfers from Armenia to Russia totaling $401.8mln. Thus, the net inflow totaled $463.8mln.
In 2021, Russia's share in Armenia's foreign trade totaled 32.7%. The mutual trade totaled $2.6bln, with exports totaling $847.2mln and imports, $1.8bln.
Russia remained the leader in terms of foreign investments in Armenia in 2021 ($975.1mln), with its direct investments totaling $371.1mln.
