Labor migrants remit almost $6.5 billion to Ukraine in six months

17 August, 10:27 AM
The NBU expects $13 billion in remittances to Ukraine from wage earners (Photo:pexels / Pixabay)

The NBU expects $13 billion in remittances to Ukraine from wage earners (Photo:pexels / Pixabay)

Ukrainian labor migrants remitted $6.46 billion back home in H1 2022, the Cost of Ukraine NGO said in a Facebook post on Aug. 16, with reference to data from National Bank of Ukraine.

According to Cost of Ukraine, remittances will grow at a faster pace in H2 2022.

It said the volume of money transfers fell significantly in the first four months of 2022 – a drop in remittances through official channels was recorded. At the same time, the level of transfers through informal channels remained unchanged.

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The volume of private transfers amounted to $1.23 billion in June. This is 1.2% more year-over-year.

Experts believe the total annual amount of money transfers will stand at $13-14 billion. The National Bank of Ukraine gives a more conservative forecast of $12.6 billion.

Cost of Ukraine also emphasized that the rapid increase in the number of forced migrants across the border has led to significant currency outflows from the country.

At the same time, remittances from labor migrants to Ukraine remain stable and ensure there is a continued flow of foreign currency into Ukraine.

Still, economists stress that the income from labor migrants, even added to the total amount of international aid, is not enough to compensate for the outflow of foreign currency from the country.

Meanwhile, Ukraine should not expect a significant increase in transfers, as in 2021, since the countries to which the migrants have fled are now prone to accelerating inflation, and there is also a general cooling of the economies of these countries.

As reported earlier, the volume of money transfers to Ukraine from abroad in the first five months of 2022 exceeded the level in the pandemic year of 2020.

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