Money transfers still decreasing

The downward tendency of the amount of money transferred into Georgia has continued into February. The country received USD 52.4 million in transfers from overseas in that month, USD 12.9 million less than in 2008.

According to National Bank of Georgia the decrease is largely due to a decline in money transfers from Russia in particular, which have gone down by USD 12.1 million. Transfers from other countries are almost the same. Despite this dramatic decline Russia is still the main source of money transfers into Georgia, which were worth USD 27.1 million in February, more than 51% of the total. USD 4.8 million was transferred from the USA, 2.9 million from Ukraine, 3.5 from Italy, 3.3 from Greece, 1.8 from Turkey and 1.3 from Spain.

Money transfers into Georgia from overseas are essential to support the population. In 2008 Georgia received over USD 1 billion in money sent home, however the global economic crisis has negatively influenced the income of Georgian emigrants. The inflow of transfers is predicted to decrease further, in particular from Russia, where the confrontation between the two countries has had a negative impact of the businesses of Georgian immigrants.