Friday, March 24 2023 16:36

ArmInfo.In January 2023, the net inflow of private remittances to Armenia due to the significant increase in receipts from Russia increased noticeably- 4.2-fold  compared to January 2022, (from 25.2% growth a year earlier),  amounting to $170.2 million in the reporting month.  

Moreover, the net inflow of private remittances from Russia increased significantly  -14-fold on a y-o-y terms from the 7.2% decline of the previous year,  reaching $ 254.2 million, while the net inflow of transfers from the  United States turned from 48% growth towards 61,6% decline, amounting  to $10.6 million. This is evidenced by the data of the Central Bank  of the Republic of Armenia.

This was the result of a sharp acceleration in the y-o-y growth in  the inflow of transfers from Russia to Armenia from 4.5% to 7-fold,  which was also observed at a more restrained pace in the outflow of  transfers from Armenia toRussia - from 15.5% to 17%. At the same  time, the volumes of inflow and outflow of transfers in the direction  of the United States showed a multidirectional y-o-y trend, in  particular, the inflow of remittances from there decreased by 1.4%,  and the outflow to there increased 2.2-fold, while a year earlier -  an increase in inflow by 15.7% was accompanied by a decline in  outflow by 20.4%. As a result, in January 2023, the volume of inflow  of transfers from Russia amounted to $281.2 million, outflow to the  Russian Federation - $27.03 million, and the volume of inflow and  outflow of transfers in the direction of the United States amounted  to $40.3 million and $29.7 million, respectively.

In total, the inflow of transfers from individuals to Armenia  accelerated the y-o-y growth from 11.8% to 3- fold, while the growth  of the outflow of transfers accelerated from 6.5% to 2.5-fold, the  volumes of which in January 2023 amounted to $386.1 million and  $215.9 million, respectively.  In the inflow, the share of Russia in  y-o-y terms increased from 31.8% to 72.8% (against 42.6% in January  2019), while decreasing in the outflow from 26.4% to 12.5% (against  53.8% in January 2019). And the share of the United States decreased  in y-o-y terms both in inflow - from 32% to 10.4%, and in outflow -  from 15.1% to 13.7%, being lower than the corresponding indicators of  the pre-COVID period - 13.7% and 14.7 % in January 2019.  In January  2023 alone, the net inflow of transfers to Armenia decreased by  43.6%, as a result of an almost equally noticeable decline in inflow  and outflow by 34.7% and 25.3%, respectively. In particular, the  inflow of transfers from Russia and the United States decreased by  33.5% and 36.5%, which was also observed in terms of outflow in these  directions - by 55.3% and 26.2%, as a result, the decline in net  inflows from Russia was more moderate (30%) than from the US (54.3%).  As a comparison, we note that in January 2022, a similar trend was  observed, with the only difference that then the inflow and outflow  towards Russia showed an equally significant decline (51.4% and  49.5%), while towards the United States a downward the inflow and  outflow trend was similar to the current one (35% and 28%), as a  result of which the decline in net inflow from Russia was more  significant (54%) than from the US (38%)