Remittances Continue Dropping As Immigrants Face Crisis Effects
Experts say remittances will continue their declining trend despite the crisis effects because most immigrants are creating their own families abroad
Tirana Times
TIRANA, Dec. 14 – Immigrant remittances, a vital source of income to dozens of thousands of families in Albania showed slight signs of recovery during the third quarter of this year but remained lower compared to the first nine months of 2009, continuing their declining trend as Albanian immigrants face the ongoing crisis effects in their host countries, mainly Greece and Italy where around one million Albanians live and work.
The latest central bank data show remittances during the third quarter of this year registered a slight increase to 135 million euros, 4 million more than the same period last year, but remained far below the pre-global crisis period, the third quarter of 2008 at 214 million euros and the third quarter of 2007 at an almost record 250 million euros.
Total remittances sent during the first nine months of this year dropped to 524 million euros, down from 555 million euros during the same period in 2009 and 620 million in the first three quarters of 2008.
Experts say remittances will continue their declining trend despite the crisis effects because most immigrants are creating their own families abroad and often even taking their parents with them.
Meanwhile, dozens of Albania immigrants, mainly in neighbouring Greece have retuned to start new lives in Albania, unable to find a job for several months and pessimistic that the severely crisis-hit country will recover in the next few years.
Albania is particularly vulnerable to a serious Greek downturn, as the majority of remittances in Albania come from migrants in Greece, many of whom work temporarily in seasonal jobs, says EBRD in its 2010 economic outlook report.
Remittances accounted for 10.7 percent of the GDP last year, down from 10.9 percent in 2008 and 13.5 percent in 2007.
The amount of remittances immigrants sent to their families in Albania registered a considerable drop in 2009, reflecting the effects of the financial crisis in their host countries, mainly Greece and Italy, where more than one million Albanian immigrants live and work.
The average amount of quarterly remittances a household received in 2009 dropped to 270 euros, down from 289 euros in 2008, according to findings of a survey carried out by the Bank of Albania and the country’s Institute of Statistics (INSTAT). The survey published in the Bank of Albania 2009 balance of payment report showed the average quarterly amount of remittances in 2009 dropped by 7 percent compared to 2008.
Some 800 families previously covered in the 2009 survey were excluded from the 2009 questionnaire because of not receiving remittances anymore and replaced with 1,000 new families.
Around 46 percent of immigrants sending remittances were reported to living in neighbouring Greece, compared to 41 percent in Italy. A majority of 87 percent of families said they received remittances from acquaintances or immigrants themselves when coming home usually for summer or Christmas holidays, leaving formal money transfers at a limited number.
