Start date: August 2022
End date: December 2022
Donor: United Nations Development Programme (UNDP)
In 2022, GERMIN, in partnership with the United Nations Development Programme (UNDP), conducted research to investigate the effect of inflation on remittances from the diaspora to Kosovo. This research aligns with GERMIN’s commitment to utilizing empirical data and scientific methods to gain a deeper understanding of diaspora-related issues.
The purpose of this study was to gather impressions from diaspora remittance senders and remittance receivers in Kosovo about the potential impact of the war in Ukraine and inflation on the amount of remittances, excluding potential investments from the diaspora. The survey was conducted with a total of 198 remittance senders living in different countries and 117 remittance receivers in Kosovo. The survey was administered in two rounds, between September 5 – 30, 2022 and November 4-16, 2022, to collect the data of interest.
Results show that for more than half of the remittance senders in the sample, the amount of remittances sent to Kosovo has increased in the last 6 to 12 months (2021/22), mainly due to a change in living costs or financial situation/income of family members/relatives. Such findings correspond with the events during the past year, as consumer spending increased after the pandemic. Although many of the respondents believe the amount of money transfers to remain the same during the upcoming months/year (43 percent), around 32% expect the monetary amount of the remittances to increase compared to 20 percent who expect a decline. The majority of respondents believe that the war in Ukraine is affecting inflation and that high inflation rates will impact the amount of remittances they send to Kosovo. More than 70 percent of remittance receivers from this study believe the amount of remittances will remain the same in the next 6 to 12 months, although such funds might be impacted by changes in living costs or the financial situation of remittance senders and their families.
The research report was published in February 2023, when a roundtable discussion with relevant stakeholders took place in Prishtina. To read the full report please use the following links: