Money transfers from abroad decrease
By Messenger Staff
Wednesday, February 24Foreign money transfers into Georgia in 2009 were worth USD 840 million, about USD 150 million less than in 2008. According to analysts, this decrease was caused by the world financial crisis. However the amount of money transferred is still impressive for Georgia and makes up 10% of the country's GDP.
The number of emigrants from Georgia is not exactly known, as most of them are residing in other countries illegally. According to different estimates their number ranges from 450,000 to 1 million. Most of them are workers with low qualifications who consequently receive low salaries.
Each emigrant sends USD 100 to Georgia monthly on average, according to some estimates based on bank data. As for cash transfers, it is impossible to calculate how much enters in this way. Experts suggest that emigrants send home about USD 1 billion annually in the form of cash.
Following the decrease in foreign investments the Government has taken an interest in Diaspora capital. The Diaspora Minister has predicted that he will attract about USD 600 million in Diaspora capital back into the country. Under his action plan in this area for 2010 the Georgian economy will attract USD 300-400 million through about 2 % of the work migrants investing money in real estate and about USD 30-50 million a year in deposits by 1% of the migrants opening accounts in Georgian banks.