World Bank: Remittances in Albania Were 9.6% of GDP

World Bank: Remittances in Albania Were 9.6% of GDP

TIRANA, July 12

The remittances sent from immigrants are a crucial part of many economies all over the world. Based on the report from the World Bank (WB), published on April 8, 2019, the remittances sent to low and middle-income countries reached a record of €469 billion in 2018, an increase of 9.6% compared to 2017.

According to data from Washington-based organization, the remittances sent in Albania in 2018 were 9.6% of the GDP in the country, whereas in other countries in the Balkans region, such as Bosnia and Herzegovina the remittances were 11% of the GDP, in Montenegro 11.4% of the GDP and in Kosovo 15.8% of the GDP.

Among countries, the top remittance recipients in 2018 were: India with €70 billion, followed by China (€59 billion), Mexico (€32 billion), the Philippines (€30 billion), and Egypt (€26 billion). Whereas in Europe and Central Asia, remittances grew by 11% to €52 billion in 2018, compared to 2917. Referring to this data, the remittances sent worldwide are at similar levels with the Foreign Direct Investments (FDI), but if we exclude China, those are the biggest source in foreign currency, in the countries with low and middle income.

Remittances are a major helping hand for poor families all over the world, and a way to facilitate the poverty, but the value of the remittances drops usually because of the high charge of the shipment of the money, that on the average goes 7%. In 2019, remittance flows to low and middle-income countries are expected to reach €488 billion, to become their largest source of external financing.

Source/ World Bank

Read also: Remittances Generated €1.25 Billion Income for the Economy

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