About 2 billion euros spent diaspora in Kosovo during 2021

Arbnor doctor from “Germin”, the organisation that deals mainly with the diaspora, tells Kosovo that the expenses of fellow countrymen during 2021 in Kosovo amount to about 1 billion euros.

The doctor added that for the January-October period last year remittances have marked the record, where they valued 956m euros or 20 per cent more than the same period in 2020. As the sum rises because of visits and holiday seasonings.

The number of countrymen who entered Kosovo in 2021 is estimated to be over 1.5 million.

“during the year (2021) we expect an increase of 2 billion euros, including remittances and expenses that are made in Kosovo, so 1 billion more have to be remittances, and the rest have to be expenses made by fellow countrymen in the moments when they frequent their mother countries, both summer and winter holiday season. We know that expenditures are different, and diaspora spending also constitutes another category of income in Kosovo. These revenues are important to Kosovo's budget, given that Kosovo's budget is only 2.7 billion euros, which shows diaspora revenues are reaching that figure and we are lucky to have that figure”, the doctor says.

According to the doctor, each fellow traveler spends over 2,000 euros a month in Kosovo.

If we look at an average of over 2,000 euros per month per person, estimated to leave the diaspora”, he says.

University professor Albulen Kastrati tells Kosovo that the remittances booster for 2021 shows that Kosovo's economy has not yet been recovered from the pandemic.

The fact that we're continuing to accept so much remittances, even with growth and acceleration trends, shows that we as an economy have not yet been recovered from the pandemic effects, this is the first. Second, remittances greatly help consumption, food, clothing, and medical services. But, as we know part of this consumption financing from remittances goes directly to financing the import or goods we buy from abroad, which is a negative effect because import is affecting us to increase the trade deficit. Even the second negative effect is that remittances slightly destabilise the labour market in Kosovo, both not strong and balanced, because remittances in a way slow them”, she points out.

According to Kastrati, the government should not be praised for increasing remittances.

I don't think remittances are something that the state, government, or any other country should praise. Of course, remittances are especially welcome in times of crisis, especially with low incomes like us, Kosovo. Normally, remittances are also an indicator that the population needs financing, even that basic”, Kastrati points out.

BEC Governor Fehmi Mehmeti has shown that for the 9-month period, Kosovo has accepted remittances 956m euros, or 20 per cent more than the same period in 2020.

“We also have increases in remittances, which have reached a value of 956m euros or an annual increase of 20 per cent. This led to increased domestic demand and while importing”, he points out.

So far, numerous shipments from the diaspora are not channeled into investments, as institutions have often been blamed for not creating specific conditions and offers for attracting investors.