The impact of remittances on the economy

The registration of emigrants who want to participate in the May 11 elections ends today. The registration of the diaspora began on January 11 and the deadline for this process is March 4. 

According to data from the Central Election Commission, over 284 thousand requests have been registered so far, of which around 225 thousand have been approved and 42 thousand have been rejected.

Albanian immigrants in Italy lead in the number of applications, followed by Greece and Germany. The diaspora is considered important especially in economic terms.

This is due to the high level of income that emigrants bring back to their families in the homeland, otherwise known as remittances. The diaspora has great financial potential to invest; it enjoys expertise and experience in various sectors as well as a large network of collaborators or otherwise, network.

But how much money have Albanian immigrants brought back to their homeland?

Due to the unstoppable emigration in recent years, the figures have been increasing. At the end of 2023, which is the latest official annual data, the level of remittances reached 929 million euros, while in the first 9 months of last year, income from emigrants is estimated at 772 million euros. A figure that signals that we will most likely surpass the record set in 2023.

But how important is this money for the Albanian economy?

Income from emigrants is a source of livelihood for 26% of Albanian families. They influence the growth of consumption, as well as investments in various sectors, such as opening small businesses or purchasing properties. They also enable savings. But remittances also have a negative effect, which is the discouragement of employment.

  (A2 Televizion)