If in March cash transfers in favor of individuals decreased by 2.0% year-on-year, already in May the reduction amounted to 2.6%. In May 2025, $143 million came in versus $147 million a year earlier in the same month. In terms of domestic consumption, payrolls contributed much more (+12% in the first quarter) to the increase in domestic demand.
The negative trend of reducing the potential source of funding for domestic consumption (-7% in 2023, -1% in 2024) continued. Only in 5M. 2025, $630 mln was officially transferred against $665 mln in the same period last year, or 5.2% less. At the same time, transfers in both Euros (down 3.5%) and US dollars (down 12%) declined. Transfers in Euro account for 81.2% of the total volume of transfers.
Nevertheless, the excess of domestic demand satisfied by imports of goods and services over domestic production remains a very problematic area for the Government and the NBM. If it is not necessary to specifically reduce the sources of financing from outside, the experts believe that salaries and credits will have to be solved.
