Remittances drop by 6.1 % in 2009

Tirana, September 9ؒemittances sent from Albanians working abroad fell by 6.1 per cent to 394 million euro during the first half of this year, compared to 2008, data published by the Bank of Albania showed.
The fall was attributed largely to the global economic downturn that has left many emigrant jobless. Albania has an estimated 1 million emigrants that work in EU countries and the US. This year, remittances are in the lowest level in three years.
“We see a strong correlation between unemployment rates in Greece and Italy and remittances brought in Albania,” the Bank of Albania said few weeks ago in its report on the financial stability of the country.
Remittances are considered a very important economic and social factor in Albania. Almost half of the families in rural areas rely on meet to meet their basic needs.
During 2008, Albania received 833 million euro from emigrants, down 12 per cent compared to 2007. However, according to central Bank, remittances’ role in the national economy is fading.
From 2005 to 2005, their share of Gross Domestic Product fell from 14.6 per cent in 2005 to 10.6 per cent of GDP in 2008.