In 2024, Albanian emigrants sent over 1 billion euros back to their families, with the largest contributions coming from children and relatives residing in Greece, Italy, the United States, Germany, France, and Belgium. According to data from the Bank of Albania, remittances increased by a significant 116 million euros compared to 2023.
Eris Dhamo, a sociologist and professor, explains the crucial role of remittances in Albania’s economy, especially for vulnerable groups. “Inflation is still present in the country, which increases the demand for financial support from remittances to sustain the existence of these groups,” Dhamo shared with A2 CNN.
The World Bank has estimated that nearly 174,000 Albanian families, or 23% of the total population, rely partially or entirely on money sent from relatives abroad. Many citizens who depend on remittances have expressed a growing need for more financial support due to the rising cost of living. “Now that prices have gone up, we are forced to ask our children for more money. I have brothers who help me; otherwise, it would be difficult,” said one citizen.
According to data from the Institute of Statistics, the country’s two poorest regions, Kukës and Dibra, are also the ones most dependent on remittances. Additionally, nationwide, 26% of Albanian families receiving money from abroad have lower disposable income than the rest of the population.
Dhamo emphasizes that the funds sent through remittances are typically not used for luxury or entertainment but to meet basic needs. "If we refer to INSTAT's figures again, we can see that the money from remittances is primarily used to cover essential needs rather than for pleasure or luxury," she stated.
Despite the increased remittances, the depreciation of the euro has made these funds less valuable for Albanian families. According to the Bank of Albania, the loss suffered by families due to the devaluation of the euro is estimated to be around 5%.
In conclusion, while remittances continue to play a pivotal role in supporting Albanian families, the ongoing inflation and currency devaluation pose significant challenges, making it more difficult for families to fully benefit from the money sent from abroad. These financial lifelines remain crucial, but the increasing cost of living and the weakening of the euro have made it harder for families to maintain the same standard of living.