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Eurostat data shows that the value of remittances entering Albania last year reached the highest level of the past decade.
According to Eurostat, remittances reached a value of more than 1.2 billion euros, increasing by 5.8% compared to the previous year. The reported value by Eurostat refers to mature remittances as personal transfers or remittances from employees working outside the country.
Employment outside the country includes seasonal and short-term employment as well as the income of cross-border or distance workers.
However, Albania is below the average in the Western Balkans region regarding the weight that remittances have on the country's economy. For the year 2022, the average value of remittances as a percentage of Gross Domestic Product for Western Balkan countries was close to 10.5% (calculated as a simple average of the ratio for the 6 countries in the region).
Comparative Eurostat data shows that Kosovo remains the country most dependent on remittances in the region. In 2022, remittances accounted for 17.2% of the country's Gross Domestic Product. Montenegro follows with 13.3%, followed by Bosnia and Herzegovina with 10.2%. Albania ranks fourth, with a remittance value equal to 9.2% of the country's GDP.
Serbia follows closely with 9% of the GDP, while North Macedonia closes the ranking with 3.4% of the GDP.
It is estimated that the main source of remittances for Albania and other countries in the region is the European Union. Eurostat data shows that the European Union is a significant source of transfers for countries outside the Union.
Last year, personal transfers from the EU to non-EU countries exceeded 43.5 billion euros, increasing for the sixth consecutive year, with a 14% increase compared to 2021.
The recent wave of emigration in the past decade has given rise to a new cycle of remittance growth, which remains an important source of income for Albanian families and a significant factor in the country's balance of payments.
Data from the Bank of Albania shows that the growth of remittances has continued during the first part of 2023. For the 9-month period, remittances from emigrants and income from work reached 1.05 billion euros, an increase of 16.3% compared to the same period last year.