Remittances dependent on Eurozone’s activity, study

TIRANA, March 21 – A recent 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. The study also reveals that in the short-term remittances in Albania increase when the national currency, lek, appreciates, especially against the Euro, but also when the inflation rate increases.
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 2010 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 2010 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 2010 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.