2024-02-20 06:24:22
Bulgarians working abroad sent a record 1.32 billion euros to their relatives in Bulgaria in 2923. BNB statistics show this. Thus, every month, on average, more than 100 million euros entered consumption from the outside.
The comparison with 2022 shows a growth of 25%, and the total is more than before the pandemic, when workers abroad sent 1.2 billion euros. In 2020, however, due to the closure of the economies, they collapsed to 400 million euros, and in 2021 to the symbolic 161.5 million euros.
Traditionally, money from compatriots working abroad before the pandemic hovered around 1 billion euros per year, which is less than 100 million per month. This money was practically comparable to direct foreign investments in our country. For 2023 though
this one is expected tendency to turn because the investors they will jump over 3.3 billion euros
The amounts that came from outside, for each of the years, are actually larger, since the official statistics of the central bank only cover transfers over 2,500 euros, and those sent through a bank, fintech company or through money transfer companies.
They don’t count the cash
and transfers under 2,500 euros. According to some experts, about 25% of emigrant money that has entered circulation in our country is not accounted for because it is carried by hand.
There have been no significant changes in the geography of translations for years. According to BNB data, the most money comes from Germany – about 230 million euros. It is followed by the USA (209 million), Spain (114 million), England (109 million) and Greece (71 million).
Inflation increases transfers from those working abroad to their Bulgarian relatives. On the one hand, because of it, there is an increase in the income of working people, on the other hand, to compensate for the more expensive life, people send larger amounts to their relatives.
Approximately 2 million households rely on emigrants money
Financiers calculate that the average monthly amounts for a family range between 500 and 600 BGN. For 2022, for example, they are 570 BGN, and last year they rose to 610.
This money competes with quick loans, being mainly used to pay household bills, repairs, food costs. Some households use them to repay loan installments. According to data from the central bank at the end of 2023.
fast loans they have already arrived BGN 5.524 billion,
increasing by more than BGN 1 billion in a year. Out of the total amount of loans to households, 3.774 billion have fallen. Non-performing loans are 362.7 million, and they are growing by 19.8% on an annual basis.
According to Eurostat statistics, Eastern European countries are among the most dependent on emigrant money, if it is calculated as a share of the gross domestic product. For Bulgaria, it is just over 2% of GDP, which puts us in sixth place in the EU. However, there are countries where the share is much higher. Croatia is the record holder with over 7% of GDP, and Latvia, Romania, Luxembourg and Belgium are close but higher than our level. On average in the EU, emigrant money is 0.8% of GDP.