Millions of diaspora go into consumption

A year, the value of money sent by the diaspora, according to official data from the Central Bank of Kosovo, amounts to about 600m euros. These tools continue to be exploited mainly for family consumption.

Exiles who spend holidays in Kosovo say they spend considerable value of materials while in Kosovo, but they say that throughout the year they send money to their family.

Merita Berisha lives and works in Germany. She says she spends her vacation every time in Kosovo to her family, for whom she says she sends money every month.

We as a family each time sent money to Kosovo, approximately a month we send it from 300 euros. They spend their money on food and clothing except for what is bad. Now that I am here in Kosovo, I spend up to 3 thousand euros for two or three weeks to stay here”, she says.

Ismet Sadiku, who also lives abroad and on vacation has come to Kosovo, says he spends a lot during his stay in his homeland.

I spend all my savings in Kosovo when I come on vacation. All the time I've helped my family live here. They need it because it is known that there is great unemployment here in Kosovo and that they fail to cover expenses with salaries they receive”, he says.

A large amount of Kosovo diaspora vehicles according to official data also invests in the purchase of real estate in Kosovo.

Based on official notes, there are between 700 and 800 thousand Kosovo citizens living in different countries in Europe and the world.

Kosovo Central Bank spokesman Kuqirim Ahmeti tells Radio Free Europe that remittances compared to last year have marked increases.

The value of money sent by exiles has reached over 300m euros in January (May). This amount compared to the same period in 2017 has an increase of 18.3m euros. A large part of these tools go for consumption then into investments, mainly in real estate purchase”, Ahmeti says.

In remittances to Kosovo, Ahmeti adds come from Germany, Switzerland, the US, Italy, Austria, France and other states.

The amount of remittances per year is considered to be even higher, as some of the means enter Kosovo even through other forms that may not be included in the official data of the Central Bank of Kosovo.

On the other hand, field experts estimate that the relationship with the Kosovo diaspora must shift from a solidarity relationship to a market economy relationship, where migrants will invest their funds.

Naim Dedashi from the Albanian Business Network in Diaspora tells Radio Free Europe that the Kosovo diaspora is continuing to contribute to the country's economy, but that the money sent out, which is largely spent on consumption, must be changed orientation.

Even this year as every time the Kosovo diaspora testified that it wants to contribute to Kosovo. They continue to come with their families on holiday in Kosovo. As for sending money to their families, I think it's not even hit because with that money it would be better to start with some small business, in order to motivate their families to have perspectives and not depend on remitations”, Dedashaj says.

Otherwise, remittances over the years have had an important role in the country's economy, promoting economic growth and providing additional income for smaller - income families.