International money transfers are one of the important sources of forex inflows in developing countries.
Money transfers in these countries from abroad have a major impact on the well-being and purchasing power of low-income citizens, the business sector development and the country's economy as a whole.
According to economist Gigi Tvauri, remittances, along with foreign direct investment and foreign trade, are major driving force for the country's economy.
"Remittances transferred to our citizens significantly exceed FDI. The dominant countries in terms of remittances are Italy and the United States. All this prove how important Georgian immigrants are for our country. Remittances contributes most, along with foreign direct investment and foreign trade, to the economy.
“Transfers are reduced by 1.1% compared to the previous year, this is not an increase or a decrease, this is stagnation so we should exclud impact of the war in Ukraine on transfers. It is very important to pay attention to the EU share increase by 15%.
When remittances are something more than direct foreign investment, it means that we are growing, moving forward, although in a healthy situation this should not happen. When we create economic progress with the wealth accumulated abroad, it means that there is something to improve in the country, I call it "a sector standing on glass legs," the economist told Сommersant.
