The money transferred home by Moldovans who work abroad, even if they remain at a rather high level, no longer play an important role when exports are higher in value than the amounts introduced into the country for the third consecutive year. In 2017, remittances came to US$1.27 billion, while sales of foreign currency to US$ 2 billion, which is less than the amounts collected from exports, economist of the Institute for Development and Social Initiative “Viitorul” Veaceslav Ionita stated, being quoted by IPN.
In the program “15 minutes of economic realism” produced by “Viitorul” in partnership with Radio Free Europe, Veaceslav Ionita said the ensuring of the state budget revenues until recently depended exclusively on Moldovans’ cash transfers from abroad.
In 2007-2008, Moldova was the top country by the volume of remittances from abroad against the GDP. In 2008, the money transfers amounted to the highest level ever, of US$2.4 billion, which was 39.5% of the GDP. The remittances continued to play an important role until 2014, when they started to decline. It will be very hard to reach the level of US$2.4 billion during the next few years, considers the expert.
Veaceslav Ionita also said that the money that derived from remittances was used up. The utilization of the internal resources is now the only possibility of developing Moldova, combined with the attraction of investments, creation of jobs and ensuring of incomes inside the country. The salaries that will be paid in the economy in 2018-2019 are expected to be higher than the volume of remittances.
