Azernews.Az

By Mushvig Mehdiyev

Armenia is among the world's top ten countries with an economy depending on money flowing in from overseas, according to 168 Zham, a local newspaper in Yerevan.

“Armenia's deep dependence on remittances pushed it among the top ten countries, surviving on money sent from abroad by its expatriates. According to the 2013 data, remittances make up 21 percent of the GDP, making the country 9th in the list of top ten," the paper says.

East Timor, where the money inflow twice surpasses the total GDP, has the world's most dependent economy. Lesotho, Samoa and Haiti have more dependence than Armenia, while the post Soviet country leaves behind Gambia, Liberia and Lebanon.

Official statistical data said the overall amount of the remittances to Armenia dropped by $28.6 million or 1.9 percent in the first ten months of this year. Russia is reportedly the top source of the private money transfers to the former Soviet republic and nearly $57.2 million or 4.6 percent decline in the money inflow from Russia has been registered over the same period.

Now, Armenia’s economy faces a stalemate, as the national currency, the dram devaluates all while remittances decline. Many residents and experts accuse the Armenian central bank of fluctuation in the dram's value, but that is not the only catalyst accelerating the economic crisis.

Armenia strongly depends on the earnings of the residents living and working abroad, particularly in Russia. If they cut their remittances, they cut one of the major vessels feeding Armenia's economy and people.

"We are concerned over a decrease in the money coming from abroad. But the government seems unaware of the disappearance of Armenia's vital resource – its residents - whom are emigrating in droves," the paper writes.

Meanwhile, prices of several products on the market in Yerevan rose by 10 percent in November and early December.

Increasing prices paved the way for decreasing number of customers, causing a two-headed problem in Armenia's economy - salesmen could not earn, while people could not provide for the holidays.

Another price hike is expected to continue until mid-January, according to Armen Pogosyan, Head of the Union of Armenian Consumers.