In its latest report, the European Statistical Office (Eurostat) revealed the flows of personal remittances sent by residents of European Union countries about 34.1 billion euros to countries outside the European Union in 2020.
Compared to the figures recorded in 2019, when personal transfers amounted to 33.2 billion euros, this means that there was an increase of 3 percent, which indicates that more people made transfers in 2020, TheSchengen.com reports.
“In 2020, the flows of money sent by EU residents to countries outside the EU, referred to as personal transfers, amounted to 34.1 billion euros, an increase of 3 percent compared to 33.2 billion euros in 2019. The majority of personal transfers consist of money flows The total inflows to the European Union amounted to 12.0 billion euros, a decrease of 6 per cent compared to 12.8 billion euros recorded in 2019, according to a statement by Eurostat.
A more in-depth report by Eurostat on personal remittances showed that about 53 percent of all flows in personal remittances in 2020 occurred within EU member states. However, it was noted that there were differences between the member states as some of them transferred remittances to other countries while others received them.
Countries such as Poland (98 percent), Spain (93 percent), Greece (91 percent), Lithuania (84 percent), and Italy (82 percent), whose residents’ personal remittances were mostly sent to countries outside the European Union.
In contrast, Ireland (93 percent), Italy (80 percent) and Lithuania (76 percent) were the main countries that received their inflows from countries outside the European Union.
In terms of international remittances, Luxembourg and Slovenia had most of the economies of the center of the European Union. In 2020, Luxembourg recorded only 0.6 percent of its total outflows from the European Union. Similarly, Slovenia recorded only 6.8 percent of its total inflows from outside the European Union.
In addition, through the same report, it was revealed that Western European countries are the focal point of cross-border remittances.
The main economies for personal remittance flows are Germany, which received 17.4 percent of total personal remittances originating from the European Union, followed by France with 11.6 percent, Luxembourg with 11.3 percent, and the Netherlands with 10.7 percent.
Germany, Luxembourg and the Netherlands depend on the outflow of remittances mainly on income generated by borders or short-term employment. On the other hand, the outward remittance flows in France mainly stem from personal remittances.
Moreover, it was established that Croatia, Latvia and Romania were the countries most dependent on personal remittance flows in the EU in 2020. Conversely, Ireland, Greece, Finland and the Netherlands had the least dependent economies in the EU during that period.
By comparison, the economies of the Southeast appear to rely more on this type of income: Kosovo (18.5 percent of GDP), Bosnia and Herzegovina (9.3 percent of GDP), Montenegro (12.5 percent of GDP) , Albania (9.8 percent of GDP), and Serbia (7.2 percent of GDP).
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