Remittances from Azerbaijan to Georgia were conventionally highest in the week of October 25-31; however, they have considerably decreased compared to the previous week.
Remittance inflows from Azerbaijan to Georgia increased by 44 percent in the last week of October if compared to the same time frame of the previous year and by 60 percent from October 19 to October 25.
From Armenia, annual remittances went down by 21 percent in the week of October 19-25; a downward trend, but less sharp (an 8 percent decline), was noticed from October 25 to October 31.
Specialists link a downward trend in remittances from the two countries to the Nagorno-Karabakh conflict.
The World Bank says Georgia's economy (11.6%) is heavily reliant on remittances, with the country ranking 24th on the list of the states depending on remittances.
The Armenia-Azerbaijan conflict proves to be a problem for Georgia and the entire region, and if tensions are not de-escalated soon, Georgia's revenue will reduce from remittances, like it has already gone down from trade, tourism, and investments.
Experts think that the current Azerbaijan-Armenia conflict over the disputed Nagorno-Karabakh will deal a blow to the region's economy, and the longer the conflict lasts, the graver will be its consequences.
Tensions rose at the Azerbaijan-Armenia border on September 27, and they have remained high so far. Attacks and casualties have been reported.
The conflict erupted between the two countries first on July 12 and lasted for around ten days.
