BQQ Mehmeti: Over 3 billion euros spent diaspora this year in Kosovo

In an interview for Online Economy, the number one of the CEC has spoken of increasing the value of remittances and growth of the economy, while saying more than 3 billion euros are estimated to be diaspora spending.

Mehmeti has said that this year there have been increased private and public investments, with what he says has been influenced by many factors, and especially those undertaken by the Government of Kosovo.

“We have increased private consumption, public consumption, private and public investment growth. All of these have been influenced by many factors, especially the measures the Government of Kosovo has taken to the two factors, as well as lending and diaspora are key components that have impacted economic growth in the country. This year, it started successfully with an increase projected to be 3 to 4 percent, and predictions could change, given the circumstances that have resulted from Russian aggression in Ukraine and which affected the global but normal economy in Kosovo. As a result, it has happened that we have increased interest rate, inflation rate that this has then reflected in Kosovo, and has also influenced the change of monetary policies”.

Speaking of remittances, Mehmet views them as a very important source of the local economy. Says there's an increase in foreign direct investment and delivery that the diaspora has made.

“We are very optimistic that over the next six months will be positive in all aspects, there will be a decrease in inflation, our predictions will be that it will drop by up to six percent, and that this will then positively affect the growth of citizens' taxpayers and then affect consumption and many other” factors.

The governor of the CEC said 1. 48 billion euros are non-resident expenditures, which, according to Mehmet, are considered diaspora. While the total is considered to be 3 billion euros of diaspora.

“1. 48 billion euros are non-resident expenses we call but are diaspora. 1 billion are remittances, and if we look at direct foreign investments have totaled 567m euros, and these are largely realised by the diaspora, because 67 percent are dedicated to real estate, the rest for financial services, which, in total, if they collect, falls over 3 billion euros in revenues coming from the diaspora”, Mehmet says.

Mehmeti has said remittances should be instructed in terms of investments. This, it says, affects strengthening the link between the diaspora and Kosovo.

The diaspora inflows are a very important source of financing for the country's economy. Now, though, if we go into categories and nonresident spending, with a particular focus on remittances, are largely dedicated to consumption. Consumption is one of the factors that impact economic growth in the country, but what's important is that it needs to be worked towards it to direct remittances to investment. This in the first place strengthens the link between the diaspora and Kosovo, and surely there may be a higher value to the country's economy”, he said.