Rating agency Fitch has upgraded the Armenian government’s long-term credit rating from stable to positive.

Fitch writes that the recent influx of Russians and Ukrainians estimated to be 65,000, has boosted Armenia’s external as well as macroeconomic and fiscal performance.

“The Armenian economy is estimated to have grown by 11.6% in 2022, a 15-year high, boosted by the large influx of migrants, which also provides an upside to potential growth (currently estimated at 4.5%). Growth will slow to 6.1% in 2023 and 4.7% in 2024,” Fitch writes.

The credit agency says the migrant influx has resulted in an 140% increase in remittances/money transfers to Armenia.

Fitch predicts that a substantial proportion of new immigrants will stay in Armenia for at least two to three years and sees a significant chance that some of the positive effects will endure.