Transfers` inflow to Armenia continues to decline

ArmInfo.The net inflow of private transfers to Armenia in January-July 2024 accelerated in an  annual decline from 8.7% to 26.4%. In absolute figures it decreased from $1.03 billion to $758.7 million. Additionally, for non-commercial transfers, the decline in net inflow accelerated from 33% to 47%, dropping from $575.6 million to $306.1 million. The share of the latter in the total net inflow decreased over the year from 56% to 40% compared to 76% in 2022.

 This is evidenced by data from the Central Bank of the Republic of  Armenia. The deterioration in the dynamics of transfers was observed  in both direction" towards Russia, the net inflow shifted from a  45.3% growth to an 18% decline, and towards the United States, the  net inflow slowed down in the decline from 50% to 37.3%. This  resulted in a net inflow of transfers from Russia at the end of  January-July 2024 amounting to $1.6 billion and from the United  States at $71.6 million. In particular, the inflow and outflow of  transfers towards Russia decreased by 17% and 12%, respectively  compared to growth of 50% and 75% the previous year, while in the  direction of the United States, both indicators demonstrated an  upward trend:  the inflow increased from a 2% decline to 6% growth,  and the outflow growth rate slowed from 70% to 25%. 

As a result, Russia's  share in both inflow and outflow decreased,  while the United States share increased.  Thus, Russia's share in the  inflow decreased from 71.3% to 65.2% over the year, thereby returning  to the level of the same period in 2022 (64.6%).  In the outflow,  Russia's share remained at 17.4% for two years, but then it decreased  to 15.5%. At the same time, the US share in both inflow and outflow,  which was 11.1%, a year, has now increased to 13-14%, surpassing the  2022 level in terms of outflow (11.4%), and almost reaching the  inflow level (15.4% in 2022). Breaking down the annual the annual  dynamics of transfers from all countries into inflow and outflow, the  trend shows  a worsening in the inflow from 36% growth to a 9%  decline, and in the outflow from 74% growth to a stagnant 0.8%  decline.

 As a result, total  inflow volume in January-July 2024 was $3.01  billion (including $564.1 million of non- commercial nature), while  the  outflow was $2.3 billion (including $258 million of  non-commercial nature). Non-commercial transfers lingered in decline  along the inflow line with an acceleration in rates from 24% to 32%,  while along the outflow line, they slowed in growth from 13% to 4%.    It should be noted that in 2023, transfers from all countries  totaled $5.7 billion with a growth rate slowed from 2.5 times to 9.7%  for inflow, and the outflow - $4 billion (growth slowed from 2.1  times to 55%), forming a net inflow of $1.7 billion. A strong  slowdown in growth was recorded both in the inflow - from 2.5 times  to 9.7%, and in the outflow - from 2.1 times to 55%, which worsened  the dynamics of the net inflow from an unprecedented 3-fold growth to  a 36% decline. In 2023, Russia's share in the inflow remained at  69.3%, but decreased in the outflow to 15.9%, while the US share  decreased in both inflow and outflow to 11.6-11.5%.