WB: Remittances to increase by over 5% in Europe, Central Asia

After declining by 8.6% last year, remittances to Europe and Central Asia are projected to increase by 5.3% to $67 billion this year due to stronger economic activity in the EU and rising energy prices, Report informs with reference to the World Bank.

According to the bank, money transfers will increase by 3.8% next year. Remittances are currently the largest source of foreign funding in the region.

Remittances were equal to or higher than the sum of foreign direct investment (FDI), portfolio investment and official development assistance (ODA) in 2020 and 2021. The share of remittances in the gross domestic product (GDP) is more than 25% in Kyrgyzstan and Tajikistan.

The amount of remittances in the region averaged $200.