Remittances downfall

29/03/2011 16:20

It looks like Albania is losing one of the main sources of income, emigrant remittances.

Official data from the Bank of Albania indicate that Albanian emigrants have sent less money home than last year, marking the lowest point on the last seven years.

According to official data, emigration income was reduced to 696 million Euros, 11% less than last year. And this downfall was even deeper than the one of 2009, when global crisis was at its peak.

But more concerning than these sudden decreases are the money transfer tendencies. Money transferred from Albanian emigrants peaked at 952 million Euros in 2009. Compared to that year, today’s transfers are 256 million Euros lower, almost 3% of domestic gross production.

Since the first year of transition, money transferred by Albanian emigrants has been the biggest source of currency in Albania, financing the country’s needs on importation and economic growth.

But economy is looking toward other sources of currency income. Official data indicate that this decrease has been compensated by foreign investments, which by the end of last year were 827 million Euros.

As for tourism, despite political boasts, it is still having a very minimal effect on currency exchange. All the money that our economy gains from tourism is spent abroad by Albanian travelers in foreign countries.

The next remaining hope of covering the country’s need for cash are the exportations, which despite the rapid growth on the last two years, remain much lower than importations.

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