Record remittances from Romanians working abroad
Romanians working abroad sent back home 6.5 billion euros in 2023, equivalent to 2% of the country’s GDP, just 1.2% less than the value of foreign direct investments (FDI) attracted by Romania last year, according to data from the National Bank of Romania (BNR).
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This amount represents a new record and is over two times higher than a decade ago – from 2014, as reported by Curs de guvernare.
Over the past decade, the total value of remittances from Romanian workers abroad has reached over 46.5 billion euros, just 14.2% below the level of Foreign Direct Investments (FDIs) inflows.
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Remittances from Abroad: A Key Source of Support for Romania’s Economy
Remittances from Romanians living abroad, along with ISDs and European funds (approximately 4.2% of GDP in 2023), represent important sources of support for bridging the current account deficit and sustaining the national currency.
The current account, essentially a balance of Romania’s international transactions, recorded a deficit of 22.7 billion euros last year (7% of GDP), mainly as a result of a very high trade deficit (the difference between imports and exports: 28.9 billion euros in 2023).
The United Kingdom, the source of the largest remittances
In 2023, for the second year in a row, the United Kingdom remained the country of origin for the largest remittances sent to Romania. Nearly a quarter, or 1.5 billion euros, were sent from the UK to support families and contribute to the Romanian economy.
Remittances from Romanians abroad
Remittances from Romanians abroad reached a total of 5 billion euros, with the largest share coming from those living in Spain. Germany occupied the second position, with 1.4 billion euros.
Trends in remittances
Spain and Germany have shown a steady increase in the level of remittances over the years, while countries like Italy and Spain, which have the largest Romanian communities, have been more inconsistent in this regard. Remittances from these countries increased until 2019, followed by a few years of decline, only partially recovering after the pandemic.
Remittances from the UK
On the other hand, remittances from the UK have increased almost tenfold in the last decade, despite the Romanian diaspora there numbering less than 0.4 million people, nearly three times less than the Romanian diaspora in Italy, for example, according to official estimates.
Restrictions on Belarusian Registered Cars in Germany
Germany has recently imposed restrictions on the entry of cars registered in Belarus into its territory. This decision was made in response to the political situation in Belarus and aims to show solidarity with the opposition movement in the country.
Migration of Romanians to Germany
Approximately 0.8 million Romanians have migrated to Germany in search of better opportunities. Besides permanent residents, there are also seasonal workers who mainly work in agriculture or tourism. The remittances sent back to Romania play a significant role in the country’s economy.