Investor Presentaiton
Opportunities to Foreign Investment in Kosovo
5.1 Remittances
Remittances represent a substantial source of income for Kosovo's population and hence
have a major impact on poverty. The pace of migration has not been affected much by
the economic crisis. Following the end of the conflict, the pace of migration increased
until 2007, and then slightly decreased in 2008. However, it is not clear whether the trend
reversal in 2008 was a result of the economic crisis. The same trend continue in 2009
where the effects of the crisis manifested by decline remittances. Year 2009 marked a
decline of 5.6% in Kosovars' remittances. Year 2010 marked almost the same trend like
in 2008 and 2009 as the figures shows below.
While remittances have helped decrease poverty, they have not played a major role in
stimulating economic activity. The bulk of remittances seem to be used for immediate
consumption, and only a small share goes to business investments, or education.
Remittance trends in the past decade prove that the links between migrants and their
families in Kosovo remain strong.
Table 5.1: Remittances - by years in € Million
Remittances
2005
418.0
2006
467.1
2007
2008
2009
2010
515.6
535.4
505.6
511.6
Source: Central Bank of Kosovo, Monthly Bulletin May 2011
Table 5.2: Remittances - by countries
In percentage
Description Germany Switzerland
Italy
Austria USA
Canada
England
Slovenia
Other
2008 37.7
15.9
13.1
6.2
2.8
2.2
1.5
1.4
2.6
2009 Q1 34.9
21.4
10.5 5.3
3.5
1.6
1.6
1.0
4.2
Q2 39.4
19.7
11.3
6.1
2.6
1.8
1.3
1.4
1.5
Q3 37.4
21.2
9.8
6.0
2.6
2.1
1.3
1.5
2.2
Q4 38.1
22.0
9.8
5.5
2.3
1.9
1.3
1.3
1.7
2010 Q1 34.8
21.0
8.8
5.7
3.9
1.3
1.5
3.4
4.4
Q2 34.7
20.7
7.9
3.9
4.7
2.0
1.7
3.7
5.9
Q3 33.2
21.4
7.0
6.5
4.8
2.3
1.6
5.6
2.7
Q4
34.1
21.6
7.2
5.5
3.1
1.9
1.3
4.5
5.3
Source: Central Bank of Kosovo, Monthly Bulletin May 2011
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