Eurasian Star Business & Economy World Bank report highlights the role of remittances for Central Asian economies
Business & Economy KG TJK UZB

World Bank report highlights the role of remittances for Central Asian economies

According to the World Bank’s representative office in Uzbekistan, Tashkent recently hosted a presentation of the World Bank’s new report analyzing current migration trends, challenges, and opportunities in the Europe and Central Asia region.

The report highlights that labor migration remains one of the key sources of income for millions of citizens in Central Asian countries and the money they send back home plays an important role in these countries’ economic development.

According to the report, in 2024, remittances from labor migrants accounted for 45% of Tajikistan’s GDP (the highest share in the world in relative terms), 24% of Kyrgyzstan’s GDP, and 14% of Uzbekistan’s GDP.

The report shows that the poverty rate among Kyrgyz households with an international migrant, currently below 10%, would exceed 50% in the absence of remittances. In Uzbekistan, estimates suggest that without remittances, the poverty rate would rise from 9.6% to 16.8%.

In 2023, over 80% of migration flows from Tajikistan and Kyrgyzstan were directed toward Russia. Migration from Uzbekistan was slightly more diversified, with 57% of Uzbek migrants residing in Russia, 15% in Kazakhstan, and 10% in Ukraine.

However, in recent years, many Central Asian migrants have left Russia due to the country’s economic downturn, stricter regulations, and increasing anti-immigrant sentiment toward Central Asians. More Central Asian migrants have opted for other destinations, such as Turkey, South Korea, Great Britain, and European countries.

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