Remittances reach a record of 930 million euros in 2023/ From the new cycle of immigration and informal channels

2024-03-27 07:34:00, Ekonomi CNA

Remittances reach a record of 930 million euros in 2023/ From the new cycle of

Illustrative photo

The money that immigrants send to their family members increased significantly in 2023, reaching the highest historical level, at least since 2008, when the Bank of Albania reports the data.

Remittances, or immigrants' remittances, reached almost 930 million euros in 2023, with an increase of 11.3% compared to the previous year. Compared to 2013, when remittances entered a downward cycle, the flow has almost doubled.

Since the 1990s, inflows of immigrants became an important source of foreign exchange inflows to the country, as those who fled gradually integrated and then began sending money to their relatives they had left behind in Albania.

But after a decade or two, the ties broke and immigrant inflows began to decline, a well-known cyclical trend. This behavior was evident especially after 2008, as can be seen from the graph.

The revival of emigration after 2013 also affected the return of the upward cycle of remittances. Since this period, with the exception of 2020, immigrant flows initially expanded at single-digit rates, while in recent years growth rates accelerated.

Market operators claim that this trend is related to the positive effect that the new wave of immigration has had on remittances in the last 7-8 years, as well as the increased flows found in the market from unofficial channels.

Other Eurostat data show that the increase in immigrant flows has been reflected in the significant increase in residence permits that European Union countries have granted to Albanian citizens in recent years.

According to Eurostat, in 2022 about 74 thousand Albanian citizens (73,858) received a residence permit in one of the EU countries. Compared to a year ago, the number of permits has increased by 34%.

Meanwhile, this is the highest figure found since 2010, clearly showing an increasing trend of people leaving the country with the intention of living and working in one of the European Union states.

Since 2008, when the earliest Eurostat data is reported, European Union countries have granted a total of 832,000 residence permits to Albanian citizens.

Market operators claim that Italy and Greece are the main channels from which immigrants send money, but in recent years flows from Germany and the United Kingdom have also increased, which are in line with new immigration trends. Even in the first months of this year, the trend continued to be positive./ Monitor magazine