An increasing number of citizens of BiH who are living abroad caused the increase in remittances from the Diaspora to BiH every year.
The total amount of remittances from the Diaspora amounted to 2.61 billion BAM in the year of 2017, which is by 7 % more than in the year of 2016.
It was also noted that the amount of remittances from abroad to BiH was increased by almost half a billion BAM in the last five years, since the amount of remittances recorded in the year of 2012 amounted to a total of 2.10 billion BAM and then it was gradually increased. Thus, the largest increase was recorded between the year of 2016 (2.44 billion BAM) and 2017 (2.61 billion BAM).
The main reasons for the increase of remittances from abroad, i.e. private cash transactions, are better financial situation of people in the Diaspora, since more migrants from BiH are starting to send money to their homeland,” as noted from the Central Bank of BiH.
An especially interesting fact for many analysts and experts in the field of economy who are trying to help citizens of BiH in the Diaspora to direct their funds to investments in a smart way through several projects, is the fact that remittances of the Diaspora make 8.67 % in the total GDP of BiH.
However, the bad news is that remittances are several times larger than direct foreign investments in BiH, and the Diaspora sent six times more money than direct foreign investment only in the year of 2016.