YEREVAN, October 25. /ARKA/. Armenia is one of the three leading countries in Europe and Central Asia in terms of remittances sent home by labor migrants, according to the World Bank’s latest Regional Economic Update Migration and Mobility in Europe and Central Asia.

According to the WB update, remittances account for 13.9% of Armenia’s gross domestic product GDP. According to Armenia’s National Statistical Service, private remittances sent to Armenia through banks for non-commercial purposes exceeded $1 billion in the first 8 months of this year, which was $160 million, or 17.5% more than in the same period last year.

In 2016 a total of $1.532.8 billion were remitted to Armenia (a 6% decrease from the previous year), and $816.9 million were remitted from Armenia to other countries (an increase of 7.3%).

The leading countries in the region are Kyrgyzstan (37.1%) and to Tajikistan (28%). In Armenia’s neighbor Georgia remittances account for 12% of GDP, it is followed by Montenegro (9.6%), Serbia (9%), Albania (8.7%), Ukraine (7.2%), Uzbekistan (3.9%) and Bulgaria (3.6%).

The World Bank says remittances in the region are relatively high. They have a moderately positive impact on long-term economic growth in the poorest households, and can improve access to international capital markets. The return of migrants to their homelands can support economic development, especially when they bring capital and knowledge, according to the update.

At the same time, WB experts warn that in the long term perspective, dependence on remittances can reduce macroeconomic stability and competitiveness of the region. To address these problems, countries should implement reforms aimed at developing the financial sector and deregulating the commodity and labor markets. -0-