Armenian Remittances Drop Amid World Crisis

By Emil Danielyan

Cash remittances sent home by Armenians working abroad, a major driving force of Armenia’s economic growth, appear to have shrunk in the fourth quarter of last year amid the deepening financial crisis around the world.

The latest data from the Central Bank of Armenia (CBA) show the total value of non-commercial cash transfers processed by local banks rising by 26.2 percent year-on-year to almost 1.5 billion in January-November 2008. The figure is equivalent to almost 14 percent of Gross Domestic Product, highlighting its importance for Armenia’s economy and population. A comparable amount of money is thought to have entered the country through non-bank wire transfer systems and in cash. Read more