Remittances sent by foreigners working in Albania was at Euro 50 million in 2011 with the overwhelming majority of around 44 million euros sent to Greece
TIRANA, May 7 – Italy and Greece, where more than 1 million Albanian migrants live and work, account for around 84 percent of remittances to Albania, Open Data Albania research centre says in a report referring to World Bank data. Meanwhile, the United States, Macedonia, Germany and Canada provide another 14 percent in remittances, leaving the rest of the countries where Albanian migrants reside with only a 2 percent share in the total remittances.
Data show migrants to crisis hit Greece sent Euro 310 million in remittances in 2011 accounting for around 47 percent of the total, followed by Italy with 248 million euros or 37 percent of the total. Remittances from the United States and neighboring Macedonia accounted for 6.4 percent and 5.5 percent respectively.
Some 700 million euros was sent in remittances to Albania in 2011, according to the study.
Meanwhile, remittances sent by foreigners working in Albania was at Euro 50 million in 2011 with the overwhelming majority of around 44 million euros sent to Greece. Czech Republic citizens who until late 2012 managed the country’s electricity distribution system also sent Euro 3 million in remittances.
A 2012 study conducted by the Agenda Institute shows more than half of surveyed families in Albania report receiving less in remittances during the past five years. The study which surveyed more than 1,200 families during this year showed Albanian households spend the majority 74 percent of remittances on food products. The study showed around 80 percent of remittances come from neighboring Greece and Italy and 8 percent from the United States. Another study carried out by the Bank of Albania has found that remittances, one of the main sources of income for thousands of families in Albania, are very sensitive to the economic activity in the Eurozone, where most Albanian immigrants live and work. Around 46 percent of immigrants sending remittances are reported to living in neighboring Greece, compared to 41 percent in Italy, according to a central bank survey. Remittances also constitute a critical driver of Albania’s domestic demand. Estimates suggest that for the overall economy (excluding agriculture) a 10 percent decline in remittances would lead to a 3.6 percent reduction in domestic demand, as provided by the index of sales. The sectors affected the most by remittances are construction, services and food, which are also the key contributors to Albania’s GDP. It is believed that the sharp contraction in construction has partly been a result of declining inflows from workers abroad. Experts say remittances will continue to decline because most immigrants are creating their own families abroad and often even taking their parents with them.
Remittances’ downward trend
On a falling trend since the onset of the global financial crisis in 2008, migrant remittances slightly increased to 675 million euros in 2012, up Euro 10 million compared to 2011, but were significantly lower compared to their peak rate of Euro 952 million in 2007.
On a constant falling trend, migrant remittances whose overwhelming majority comes from neighboring Greece and Italy being a vital source for thousands of families in Albania, have dropped by 30 percent from 2007 to 2012.
Bank of Albania data show Albanians sent 665 million euros in remittances in 2011, down from 690 million in 2010 and 781 million in 2009, registering their lowest level during the past seven years. An estimated more than one million Albanian migrants both in Greece and Italy have been facing severe crisis impacts in their host countries during the past three years, leading a considerable number of them to return home either permanently or temporarily because of job cuts in the construction and industry sectors where they mostly work.
Back in 2007, just before the outbreak of the global crisis remittances accounted for 12.5 percent of the GDP, compared to 7.4 percent of the GDP in 2011.
