Russia remains the largest source of money transfers (remittance) to Armenia.

In 2023, some US$5.7 billion was transferred to Armenia from abroad, with 70% ($3.946 billion) coming from Russia. This was an increase of 9.7% from 2022. (Source-Central Bank of Armenia)

The U.S. was the second largest source of foreign remittances to Armenia; ($663 million).

Switzerland came in third ($141M), followed by Germany ($103M), Great Britain $76M), the UAE ($74M) and Ireland ($63M).

Worrying pace of money outflows from Armenia

In 2023, $4.041 billion was transferred from Armenia abroad, an increase of $1.4 billion (55%) compared to 2022.

Transfers from Armenia to Russia in 2023 totaled $641 million, an increase of 42% compared to 2022.

The UAE was the second largest destination of transfers from Armenia - $571M, a two-fold increase. $465M went to the U.S., a 42% increase from 2022. $406M went to Monaco, up six-fold. $289M went to Great Britain (+1%), followed by Switzerland - $236M (-19%), Spain - $132M (+99%), Singapore - $132M (+20x) and Germany - $125M (+13%)

Despite the growing number of Indian citizens working in Armenia, only $3.3M was sent to India in 2023, a 5.5% drop from 2022.

Yerevan-based economist Agassi Tadevosyan says one reason for the increased outflows is because Armenia’s economy can’t absorb the money that is transferred from abroad Therefore, it’s leaking.

"These rates of leakage are worrying. In today's economy, money flows from abroad play a significant role. They contribute to the growth of services, consumption, and revitalize the economy. However, as early as April 2022, it was   clear that this is a short-term effect and even now economic growth is at risk," says Tadevosyan.

He says if external factors, including these remittances, begin to decrease, the Armenian government may not be able to ensure the 7% economic growth set by the budget in 2024.