Albania's emigrants' remittances increased by 21 percent in 2005, amounting to over 1 billion U.S. dollars, statistics made available by the Bank of Albania showed on Sunday.

According to the data, emigrants' remittances account for 13.5 percent of Albania's GDP, and finance 63.3 percent of the country's trade deficit which stands at around 1.37 billion U.S. dollars.

A study conducted by the International Organization for Migration in Tirana pointed out that in the past 10 years, Albanian emigrants have sent home some 6 billion U.S. dollars.

The remittances have become a basis for stable exchange rates. "In an economically fragile country like Albania, the emigrants' remittances play a significant role in keeping the Albanian currency strong and the exchange rates stable," the study said.

According to the study, a larger part of the remittances go to emigrants' families in the form of financial assistance to help them in their daily lives; but there is a part of it being invested in Albania. A poll conducted by the Albanian Institute of Statistics showed that one third of the business start-ups in Albania are invested by emigrants, mainly in the sectors of services and agriculture.

But, emigrants' remittances are expected to decrease in the coming years as a result of families joining their relatives abroad, experts said.

Albania has a population of 3.4 million. About one-third of its people have emigrated abroad, mainly in Greece, Italy, Western Europe and North America.

Source: Xinhua