Remittances play a significant role in Serbia's economy, contributing a notable percentage to its Gross Domestic Product (GDP). Analyzing the trend of remittances as a percentage of GDP over the last decade provides insight into their economic impact.
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Serbia's remittances as a percentage of GDP have fluctuated over the last decade, with recent data showing a value of 7.68% in 2023, a slight decrease from 8.97% in 2022. Historically, the average for Serbia from 2005 to 2023 is 7.41% [3]. The maximum recorded value was 10.3% in 2009 [3]. For comparison, the world average for remittances as a percentage of GDP is 5.13%, based on data from 174 countries [3].
The World Bank and the International Monetary Fund (IMF) are key sources for this data, with their balance of payments data and GDP estimates being utilized [1] [4]. For instance, in 2020, remittances to Serbia accounted for 7.25325% of its GDP [2]. These figures represent current transfers by migrant workers and wages and salaries earned by nonresident workers, encompassing workers' remittances, compensation of employees, and migrants' transfers as defined by the IMF's Balance of Payments Manual [2] [3].
Remittances are crucial for many developing countries, often representing the largest source of foreign income [5]. They tend to be more stable and countercyclical than other capital flows, increasing during economic downturns in the migrants' home countries [5]. In Serbia, the economy is a developing mixed economy with a significant manufacturing base and high dependence on international trade [6]. The country has experienced sustained economic growth since the early 2000s, with an average GDP growth of 4% per year from 2020 to 2025 [6]. Remittances contribute to household consumption, which makes up 62.6% of Serbia's GDP [6].
The impact of remittances extends beyond direct financial contributions, often reducing poverty by financing basic consumption, housing, education, and healthcare in recipient households [5]. In richer households, they can provide capital for small businesses [5]. While there are potential costs, such as the "brain drain" of skilled workers [6] [5], the overall economic benefits for countries like Serbia are substantial.
Authoritative Sources
- Personal remittances, received (% of GDP) - Serbia. [data.worldbank.org]↩
- Remittance Inflows to GDP for Serbia. [fred.stlouisfed.org]↩
- Serbia: Remittances, percent of GDP. [theglobaleconomy.com]↩
- Personal remittances, received (current US$). [data.worldbank.org]↩
- Remittances: Back to Basics. [imf.org]↩
- Economy of Serbia. [en.wikipedia.org]↩
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