Eurostat data show that the value of remittances that entered Albania last year reached the highest level of the last decade.

According to Eurostat, remittances reached a value of more than 1.2 billion euros, an increase of 5.8% compared to the previous year. The value reported by Eurostat refers to remittances measured as remittances or personal transfers and income of employees from work abroad.

Employment abroad includes seasonal, short-term employment as well as the income of cross-border or remote workers.

However, Albania is below the average of the Western Balkan region, in terms of the weight that remittances have against the country's economy. For 2022, the average value of remittances against the Gross Domestic Product for the countries of the Western Balkans was close to the level of 10.5% (measured as a simple average of the ratio for the 6 countries of the region)

Comparative Eurostat data show that the country with the greatest dependence on remittances in the Region remains Kosovo. For 2022, remittances accounted for 17.2% of the country's Gross Domestic Product. Montenegro follows, with 13.3%, followed by Bosnia-Herzegovina, with 10.2%. Albania ranks fourth, with a remittance value of 9.2% of the country's GDP.

Serbia follows with a narrow margin, at 9% of GDP, while North Macedonia closes the ranking, with 3.4% of GDP.

It is estimated that the main source of remittances for Albania and other countries of the Region are the countries of the European Union. Eurostat data show that the European Union is a very large source of remittances for countries outside the Union.

Last year, personal transfers from the EU to countries outside the EU reached more than €43.5 billion, up for the sixth consecutive year, up 14% compared to 2021.

The new wave of emigration of the last decade has given impetus to a new cycle of growth in remittances, which remain an important source of income for Albanian families and a significant item in the country's balance of payments.

Data from the Bank of Albania show that the growth of remittances has continued during the first part of 2023. For the 9-month period, remittances from immigrants and income from work reached 1.05 billion euros, an increase of 16.3% compared to the same period. period last year.

(Source: Monitor)