Net inflow of transfers to Armenia decreased by 36% in 2023

ArmInfo. The net inflow of private transfers to Armenia decreased by 36% in 2023, in absolute  terms it decreased from $2.6 billion to $1.7 billion. As evidenced by the dynamics of 2022, this figure showed an unprecedented threefold increase.

According to data from the Central Bank of the Republic of Armenia,  in 2023 the main decrease in the growth rate of net inflows was from  Russia - from 6.8-fold to 5.1%, and net inflows from the United  States accelerated in decline from 12.3% to 42.2%.

Thus, in 2023, the inflow of transfers from all countries slowed down  in growth from 2.5-fold to 9.7%, amounting to $5.7 billion. Such a  trend was observed in a less pronounced form in the outflow of  transfers.  Their growth stalled from 2.1-fold to 55%, exceeding $4  billion in absolute terms. Moreover, a double-digit identical  increase in the outflow of remittances from Armenia by 42% was  recorded both in the direction of Russia and in the direction of the  United States, against growth of 12.7% and 73.4%, respectively, in  2022.  According to the Central Bank of the Republic of Armenia, in  2023, the inflow of remittances from Russia to Armenia amounted to  $3.9 billion (with growth slowing from 4.2-fold to 9.7%), the outflow  was $641.4 million, which formed a net inflow of $3.3 billion. And in  the US direction, the inflow amounted to $663.3 million (with a  reversal of dynamics from 15.6% growth to a 1.1% decline), outflow -  $465.1 million, resulting in a net inflow of $198.2 million.

As a result, Russia's share of inflows in 2023 did not change,  remaining at 69.3% (versus 41% in 2021), while decreasing in outflows  from 17.4% to 15.9% (versus 32.8% in 2021). The share of the United  States decreased both in inflows - from 12.9% to 11.6%, and in  outflows from 12.6% to 11.5%, against 27.5% and 15.4% in 2021.

The significant increase in transfers from Russia in 2022 was due to  the influx into Armenia of a huge number of immigrants from the  Russian Federation, who moved here along with their businesses and  capital. Moreover, this move of over 100 thousand immigrants to  Armenia took place in two impressive waves - from the end of February  2022 (with the outbreak of Russia's war in Ukraine) and in September  of the same year (with the announcement of mobilization in the  Russian Federation). The influx of immigrants was also due to  unprecedented sanctions - disconnection of Russia from the S.W.I.F.T.  system, withdrawal of Visa and MasterCard from the market, blocking  of Western social networks, etc.).