Record foreign remittances

Judging by the data collated by the National Bank of Serbia (NBS), in 10 months (from January to the end of October) of 2023, Serbian citizens received about 4.3 billion euros from abroad. According to the NBS, this is about two percent more than the same period in 2022.

2022 was a record year because the remittances to Serbia amounted to around five billion euros. In 2021, according to NBS data, remittances stood at 3.6 billion euros.

After the coronavirus pandemic, the central bank explains, the amount of remittances went up thanks to numerous other factors as well.

“After the pandemic, when there was limited movement of the population in the countries where the majority of our diaspora lives, so the remittances grew in 2022, with the milder growth continuing in 2023. Foreign remittances normally have a counter-cyclical character, which means that they grow in periods of crises, increased global uncertainty and geopolitical tensions,” the NBS says and adds:

“Secondly, the growth of inflation in 2022 in most countries led to the fact that all key macroeconomic indicators, including remittances, were nominally increased. Finally, the strong growth of foreign remittances in 2022 was also influenced by the increased number of citizens of other countries establishing their residence in Serbia”.

“Taking into account the expected drop in inflation and the calming of geopolitical tensions in the world, we expect that the flow of remittances to Serbia will also stabilize,” the NBS pointed out.

Foreign remittances also fill in the gaps in Serbia’s gross domestic product and somewhat reduce the external trade deficit.

(Forbes, 12.01.2024)

This post is also available in: Italiano

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