Surge in Remittances Powers Kosovo's Recovery

Kosovars working and living abroad sent home 56.7 million euros in cash during January 2016, according to the Central Bank, much the same as in January 2015, when the figure was 57 million euros - but well up on the figure for January 2014, when the figure was 42 million.

The increased flow of remittances in the last two years has positively affected the country's economy, financial institutions say.

The central bank chief, Bedri Hamza, said Kosovo's economic growth in 2015 was down to a combination of "increased loans, remittances and foreign direct investment".

The bank estimates that 566 million euros of remittances entered the country in 2015 as a whole, most of which went through banks and money transfer agencies.

This was a notable increase on 2014, where 505 million euros of remittances entered the Kosovo economy.

The IMF has also mentioned remittances among the top factors that have contributed to the development of the economy.

In January, the IMF estimated Kosovo's economic growth for 2015 at 2.4 per cent - a twofold improvement on the 1.2 per cent growth rate of 2014, ranking remittances first among the factors.

"Recovery is driven by accelerating remittance and FDI inflows, stronger banking credit, and solid exports," according to the IMF.

The increase in remittances reflects continued emigration.

According to the Kosovo Statistics Agency, the population of Kosovo at the end of 2014 was estimated to 1,804,944, 15,000 down on the figure for 2013.

Considering the birth rate, the agency estimates that about 39,000 citizens left the country that year.

The importance of the diaspora to the Kosovo economy is celebrated through parties thrown in their honour by several municipalities, which...