The massive influx of people from Russia has pushed up Armenia’s GDP by 13.1% in the first half of the year—far above early-2022 market expectations, S&P Global Ratings says in a fresh report.

The report said that running against the tide, the currencies of Armenia, Georgia, and Tajikistan have been steadily appreciating over the course of 2022. Exchange rates of these currencies are now significantly above their levels prior to the Russia-Ukraine conflict and among the strongest performers across emerging markets so far this year.

After dropping in early March, the Armenian dram has rallied about 30% against the U.S. dollar. Surging financial transfers from Russia have supported balance of payments in the country.

Central Asian And Caucasus economies have experienced a massive influx of people from Russia, who fled the country after the start of Russia-Ukraine conflict. Exact data is not available, but estimates point to about 150,000-300,000 who fled Russia from February to midApril, with most now residing in Central Asia and the Caucasus, Turkey, and the EU.