1.22 billion euros brought exiles to Kosovo last year

The Kosovo diaspora continues to be one of the main pillars for the Kosovo economy. The Central Bank of the Republic of Kosovo has announced that accepted remittances in Kosovo reached 1.22 billion euros, with annual growth of 6.0 per cent, representing 13.7 per cent of BPV.

The slow growth of remittances during 2022 could be attributed to a measure, the potential deterioration of the financial position of the Kosovo diaspora, as a result of the increased cost of living with the overall price rate increase, increased interest rates and the consequence of debt, and the weakening of overall demand in the eurozone”, says the “Financial Stability Report”, BQS, RTKlive.

According to this report, since the majority of remittances come from the eurozone countries, which are over 60.2 percent, uncertainty about macroeconomic dynamics in the year increase the uncertainty about the country's economy (13.7 percent of the BPV) economies in the country, reducing the position of family economies with indirect potential effects on credit risk dynamics.

Also for 2023, according to the CEC, the main risks for financial stability at the global level continue to remain increased geopolitical tensions, the slow pace of the decline of inflation (basic inflation remains high), and as a result, the continuation of the tightening of monetary policies through increased interest rates ʹ dynamics that jeopardise the eurozone, the countries of the region and Kosovo in an environment of weakened economic activity.

For 2023, inflationary pressures, as well as uncertainty about economic activity, are expected to affect the potential decline in credit demand and the overall degree of financial mediation”, the report said.