How money transfers of Russia impact macroeconomic indicators of Azerbaijan?
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, March 8
By Sadraddin Aghjayev - Trend:
The reduction of money transfers from Russia will have an
insignificant impact on the macroeconomic indicators of Azerbaijan,
Head of the South Caucasus political science club Ilgar Velizade,
told Trend .
The indicator of remittances in Azerbaijan's gross domestic
product (GDP) occupies an absolutely small share and its impact on
macroeconomic indicators will be minimal, he noted.
'About 650,000 Azerbaijanis live in Russia according to official
data. Larger amount of our compatriots go to Russia for seasonal
work. Volume of their money transfers to Azerbaijan ranged from
$500 million to $1 billion yearly in the previous 2-3 years. This
figure was about $450 million for 2020,' Velizade said.
Russia has already set a limit for individuals to make transfers
abroad up to $5,000 per month per person, the expert added.
'Remittances will decline significantly. Decline in solvency
also will be noted in Russia. The sanctions imposed on Russia have
obvious goals and consequences,' Valizade noted.
He said the reduction is expected in those sectors where foreign
capital was present, GDP will also decrease by seven percent
(according to international organizations), also economic activity,
which will lead to a reduction in the domestic market and will
limit the interaction of domestic market entities with foreign
partners.
All this will lead to a reduction in the income of Russia's
population and the countries whose citizens make up a significant
part of labor migrants will suffer the most from the reduction in
remittances.
'These are, first of all, representatives of Uzbekistan,
Tajikistan, Kyrgyzstan, Armenia,' Velizade said.
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