GDP slowdown also affects money foreigners send home: Bank of Italy data

The Italian economy is slowing down and this has also affected the balance of remittances from foreign citizens residing in our country to their country of origin. According to statistics collected by the Bank of ItalyIn the fourth quarter of last year, the amount of money sent abroad by foreign workers in the region increased decreased by 2.4% While the overall decline for the entire year 2023 It is about 0.4%.

It is a contraction that goes hand in hand with the country's economic performance, which currently finds itself in a state of “slow growth.” In fact, compared to +3.7% in 2022, associated with the post-pandemic recovery phase, last year. GDP grew by only 0.7%. This recession also affected remittances by foreigners residing in Italy, which in 2023 decreased to 8.1 billion euros Compared to 8.2 the previous year. The biggest differences relate to flows towards Sub-Saharan Africa And the verse European UnionDecreased by 7.8% and 4.7%, respectively.

Source: Bank of Italy

Conversion numbers: Which areas are bucking the trend?

Overall, almost all Italian regions registered negative or almost zero growth in remittances sent abroad in 2023, up to a peak of 7.7% as of Sardinia. The decline was also included Lombardy, Lazio and Emilia Romagna, From which nearly half of the financial flows sent by foreign citizens to their home countries come (with differences of 0.3%, 1.2% and 0.2%, respectively). The exception is Tuscany Which recorded a growth of 1.5% and is among the five most important regions in terms of remittances. Positive changes were also recorded in Molise and Basilicata, +5.8% and +4.1% respectively, even if their contribution to the total funds directed abroad is very low. In fact, the prevalence of migrant remittances to their countries of origin in the two regions stops at 0.4% in Basilicata and 0.1% in Molise, followed only by Valle d'Aosta.

Source: Bank of Italy

As for PBeneficiaries Of remittances coming from our country in 2023, Bankitalia data confirms the previous year's figures: Bangladesh, Pakistan and the Philippines They remain the top three recipients of flows, with shares of 14.3%, 8.3% and 7.3%, respectively.