Remittances from both Armenia and Azerbaijan increased between November 2-8.
The weekly economic review of TBC Capital reveals.
In the case of Azerbaijan, remittances' growth dynamics show a positive trend in both annual and weekly terms. The annual change in inflows from Armenia is still negative but has improved compared to the previous week.
In the period of November 2-8, the growth of remittances from Azerbaijan to Georgia (compared to the same period last year) is at a three-digit level and equals 216%.
During the previous three weeks, the rate was growing by only double digits. In the week of October 26-November 1, remittances from Azerbaijan increased by 37% compared to the same period last year, and in the period October 25-31, remittances from Azerbaijan to Georgia increased by 44%. The figure for October 19-25 is 60% higher than last year. In addition to these three weeks, the volume of remittances from Azerbaijan increased by almost three percentage points throughout the year.
Cash flow from Armenia decreased by 14% annually on November 2-8 and by 30% in the previous week, October 26-November 1. The annual change in inflows from Armenia was also negative on October 19-31. More specifically, in the period of October 19-25, remittances from Armenia to Georgia decreased by 21% on an annual basis, while in the period of October 25-31, the figure shows a decrease of only 8%.
Specialists link the decrease in cash flows from Azerbaijan to the Nagorno-Karabakh conflict.
According to the World Bank, 11.6% of the country's economy is filled by remittances sent by Georgians working abroad. Georgia ranks 24th in the world in terms of remittances. According to experts, the role of remittances in the Georgian economy is large, and the share of these two countries in remittances is not small.
According to them, the war affected the economies of the two countries involved in the conflict, Armenia, and Azerbaijan and harmed the economies of Georgia and the entire region in terms of trade, tourism, and investment remittances.
