The volume of migrant workers’ remittances to Ukraine dropped by half a billion of US dollars in the period from January to August 2020, Finance.ua reported.
Ukraine’s income from remittances dropped in 2020
Remittances are an important part of income for countries exporting labour. Ukraine is one of the largest exporters of labour in Europe and this income is important to the country’s economical wellbeing.
In total, the amount of money transfers to Ukraine from abroad dropped by 6.4% in the period of January-August this year. The total amount of transfers was 7,168 million dollars, as compared to 7,661 million in the same period of 2019, the National Bank of Ukraine informed.
Informal transfers dropped nearly by half, from USD 2.5 billion to USD 1.28.
According to the National Bank of Ukraine, the large amount of remittances sent by migrant workers home was one of the reasons for hryvnia’s strengthening in 2019.
In total, the expectations are that the loss of income from remittances will amount to USD 2.5-4 billion fir the whole year or 20-30%.
Migrant workers from Ukraine had been essential for the development of Poland’s economy in recent years. Other European countries also found hiring Ukrainians to be an effective measure for the business.
Ukrainians work on farms picking berries and fruit, in construction, at factories. The jobs that workers from Ukraine are happy to take aren’t attractive to locals.
However, it is the higher remuneration that migrant workers are after. They wouldn’t pick the same job in Ukraine due to the low wages. But higher wages that workers in Europe can get are much more attractive.
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