By Aram Achemyan
In the first two months of this year, the outflow of money from Armenia to the United States has increased sharply—by about 80%—, whereas the inflow from Russia decreased—by about 20%. It is assumed that a new wave of emigration from Armenia will follow them.
The economic crisis of 2020 was unprecedented compared to the last ten years. Amid deep economic downturns, remittances to Armenia also fell, worsening the living standards of the country’s people who are living on remittances. In 2020, individuals in Armenia received $1.84 billion in remittances through banks, which is $116 million—or 6%—less than the previous year.
It is noteworthy that since 2015, remittances from Armenia to abroad have increased considerably. And from the $1.26-billion outflow recorded in 2020, it can be assumed that people are withdrawing their money from Armenia due to political instability or socioeconomic situation in the country. The recent Artsakh (Nagorno-Karabakh) war, in turn, has contributed to the growth of this instability and emigration.
The situation is virtually the same this year. In January-February 2021, compared to the same period last year, 4.4% more money was transferred to Armenia; in particular, remittances from Russia decreased by 19.1%, whereas those from the US increased by 83%.
During the same period, outflow of money from Armenia to the United States increased by 78.8%. It turns out that our compatriots who have settled in the US are transferring money to Armenia for charitable, domestic or other purposes, whereas those living in Armenia are withdrawing their money from the country.
The outflow of money from Armenia continues, and this once again proves the deepening of the socioeconomic and political crisis in the country. Therefore, new waves of emigration from Armenia can be expected in the coming months.