The FINANCIAL — During the first two months of 2014 the volume of remittances increased by 4% in Georgia, amounting to USD 205,225,600, up from USD 197,726,000 from the same period of the previous year.
Against the background of the total growth, money transfers from Ukraine and Russia have dropped in 2014. The ongoing crisis in Russia and Ukraine is the basis for experts to predict further depreciation of remittances from these two countries.
Money transfers from Russia dropped by 6.5% during January-February 2014. The volume from Ukraine decreased by 3% during the same period.
“According to the National Bank of Georgia, in 2013 a total of USD 801 mln was flowing in from Russia. Ukraine contributed USD 45 mln to the money inflows, still significant for an economy as small as Georgia’s. An economic downturn in Russia and Ukraine would hit many Georgian citizens, often pensioners and elderly people, who depend on the remittances of their children and other family members sent from these countries. This may aggravate a trend that already exists: in January 2014, money inflows from Russia decreased by 4% and from Ukraine by 5% (compared to January 2013),” Florian Biermann, Professor, and Giorgi Tsutskiridze, Research Fellow at ISET, predicted in their research at The Forum for Research on Eastern Europe and Emerging Economies (FREE).
Out of the total volume of remittances (USD 205,225,600) the Russian Federation remains the main leading country of remittances to Georgia. Money transfers from the Russian Federation made up 47.7% in 2014. The sum amounted to USD 97,975,500. The share of remittances from Ukraine was 3.2%.
The top countries from which monthly remittances exceed USD 1 million are as follows: the Russian Federation, Greece, Italy, the USA, Turkey, Ukraine, Spain, Germany, Israel, Azerbaijan, Kazakhstan and the UK.
Besides Russia and Ukraine, 2014’s two month data has shown money transfer depreciation from the UK. The sum amounted to USD 2,309.4 thousand down from USD 3,096.5 from the same period of 2013. There was a negligible (0.2%) reduction also from Azerbaijan. USD 2,347.4 thousand was transferred from our neighbour country in 2014, down from USD 3,096.5 thousand of January-February 2013. The rest of the top countries making up the largest volume of remittances recorded growth in volume. With growth of more than USD 5 million Greece has shown the largest increase of money transfers. The sum amounted to USD 31,689.8 thousand during the first two months of 2014, up from USD 26,318 thousand of January-February 2013. Remittances increased by more than USD 3 million from Turkey and by USD 1.8 million from Italy.
The transfer of money to Georgia has continued unabated year by year. The total volume of inflow amounted to USD 1,476,661 thousand in 2013, up from USD 1,334,174 in 2012, and USD 1,268,127 in 2011.
The growth has applied to outflow as well, however the 2013 figure made up just 10.5% of the amount of inflow. USD 155,349 thousand was transferred from Georgia in 2013, up from USD 108,191 thousand in 2012, and USD 100,255 thousand in 2011.
According to the migration policy centre of the European Union 2013 report, looking at destination countries’ statistics, 767,489 or 198,904 Georgian migrants resided abroad in the years around 2012 (table 1), who represent respectively 17.1% or 4.4% of the total population residing in Georgia.
Immigration stocks in Georgia show relatively small flows in comparison to other countries in the CIS region. However, in the past decade flows have steadily increased. Labour immigrants move to Georgia mostly from India, Turkey and China.
Georgian consular statistics found stocks to amount to 405,433 emigrants. Based on the country of citizenship criterion, these statistics likely include a number of irregular migrants – who want to be in a regular position at least with the institutions of their countries of origin – and some second generation migrants. According to these figures over half of all migrant stocks are in Russia.
Migrants are heavily distributed across the working ages. As to their gender composition, males are much more represented in other former Soviet republics (64.0%), while a more gender balanced profile is observed in other countries (males make up 49.2%). Georgian migrants tend to be medium-highly educated with 45.3% holding a secondary diploma and 32.8% – tertiary education.
Migrants in OECD countries tend however to be higher skilled with the same percentage being at 35.7% and 38.7% compared with those staying in other former Soviet republics (where the same values stand at 53.8% and 27.7%, respectively).
In OECD countries, there are three main occupational shares for Georgian emigrants – professionals (18.4%), service workers and shop and market sales workers (16.4%), and craft and related trades workers (14.8%).
The main motivation to migrate for 78.4% of all emigrants was to improve their current economic situation. Study (6.6%) and asylum (1.1%) were the other motivations of note.
Skills mismatch is a likely trend amongst Georgian stocks, as one in four potential migrants has been found not to have a particular job preference. Instead, gaining employment is their major aim. For example, potential emigrants are willing to accept lowly qualified jobs such as domestic help/care giving.
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