Diaspora remittances reach €828 million in seven months, with Germany contributing the most

Financial inflows sent by the diaspora to Kosovo continue to increase.

Data from the Central Bank of Kosovo show that during the first seven months of this year, remittances reached €828 million, or 5.5% more than in the same period last year.

According to the CBK, this increase may be linked to the diaspora maintaining economic and family ties with Kosovo, improvements in emigrants’ incomes and economic conditions in the countries where they live and work, as well as their continued financial support for families in Kosovo. According to the bank, the diaspora’s gradual expansion over the years has also contributed to this development by increasing the number of people sending money to the country.

Experts estimate that the majority of remittances are used for daily expenses, while recommending that a larger share be directed toward investments.

Economist Fidan Qerimi said that diaspora funds should be directed, for example, toward the manufacturing sector. According to him, such a move would create a circular economy by stimulating domestic consumption and production, reducing imports, and enabling the development of businesses that could use their ties with the diaspora to export products abroad.

Qerimi emphasized that such a policy would help increase Kosovo’s exports, particularly given the country’s highly unfavorable trade balance and the fact that the import coverage ratio is below 15%.

Kushtrim Ahmeti of the Chamber of Commerce and Industry said that the organization has long called for remittances to be channeled more systematically toward economic development.

However, he said that none of Kosovo’s governments to date has shown a willingness to develop an adequate policy that would give these funds a clear purpose.

According to Ahmeti, directing remittances toward economic growth would also help increase employment and ease the burden on emigrants of supporting their relatives in Kosovo, given the major role they play in this regard.

CBK data show that Germany is the main source of remittances, accounting for around 39% of the total funds received in Kosovo.

Switzerland ranks second with 17% of remittances, followed by the United States of America, Austria, Italy, Belgium, France, and Sweden.