Remittances continue to serve as a key economic pillar for several Balkan countries, with Kosovo and Bosnia and Herzegovina showing the highest dependence on money sent from abroad, according to the latest World Bank data.
Romania Tops Inflows, Kosovo Most Dependent
Romania recorded the highest remittance inflows in the region, amounting to $10.1 billion in 2024, followed by Croatia ($6.78 billion) and Serbia ($5.84 billion). The smallest inflows were reported in Montenegro ($829 million) and North Macedonia ($460 million), reflecting the relative size of their diaspora and economic structures.
While absolute inflows were largest in Romania, Kosovo (17.3% of GDP) and Bosnia and Herzegovina (11% of GDP) were the most reliant on remittances as a share of their economies. This underscores the strong dependence of these nations on their expatriate communities, who contribute significantly to household incomes and domestic consumption.
Regional Variations in Economic Impact
Slovenia (1.36% of GDP) and Bulgaria (2.27% of GDP) reported the lowest levels of remittance dependence, indicative of their stronger domestic economies and less reliance on foreign labor migration. In contrast, North Macedonia, despite relatively modest inflows, saw remittances account for 2.9% of its GDP.
Romania, while leading in total remittance receipts, registered a lower dependence (2.73% of GDP), highlighting the country’s more diversified economic base. The trend suggests that larger economies in the region have multiple sources of income beyond remittances, whereas smaller nations with higher reliance could face greater economic vulnerabilities if inflows were to decline.
Outlook and Economic Implications
Experts note that remittances remain a stabilizing factor for many Balkan economies, supporting consumption, investment, and foreign currency reserves. However, overreliance on these inflows may pose risks, particularly in the event of economic downturns in key labor-exporting destinations.
The World Bank data underscores the importance of strategic economic policies aimed at reducing dependency on remittances and fostering domestic growth, particularly in Kosovo and Bosnia and Herzegovina.
