Workers' transfers to Ukraine increased by $200 million in 2020 despite pandemic
During 2020, the volume of labor migrants' transfers to Ukraine amounted to 12.121 billion dollars. This is $200 million more than in 2019.
They state this in the report of the National Bank of Ukraine.
So, last year Ukraine received:
- $4.7 billion through correspondent accounts of banks (in 2019, 3.8 billion);
- $2.69 billion through international payment systems ($2.2 billion in 2019);
- $4.7 billion through informal channels ($5.8 billion in 2019).
The data are given without taking into account the temporarily occupied territories.
The NBU clarified private transfers were household income coming from other households from abroad and were related to temporary or permanent migration.
Transfers can be made both through official channels (through banks, international money transfer systems, post offices) and informally by transferring cash and other valuables from one household to another.
Ella Libanova, director of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine, told LIGA.net that 400-500 thousand workers returned to Ukraine in 2020 because of the coronavirus pandemic. In total, 2.5-3 million Ukrainians work abroad.
It should be noted that transfers of Ukrainian labor migrants are one of the largest items of currency inflow into the economy. In 2019, transfers accounted for 7.7% of Ukraine's GDP. In 2018, transfers amounted to 10.88 billion dollars (8.3% of Ukraine's GDP).