EU Money Flows: A Deeper Look at Personal Transfers

In 2023, Europeans sent a record €50.9 billion to non-EU countries in personal transfers, marking an 8% rise from 2022. These flows, encompassing remittances and other financial aid sent by households to those outside the EU, demonstrate a growing trend of international financial support.

Growth in Outgoing Transfers Fuels a Negative Balance

Over the past five years, outflows of personal transfers have surged by a remarkable 53%. Meanwhile, inflows have experienced a more modest 11% growth. This significant disparity has resulted in a widening negative balance for the EU, reaching €37.0 billion in 2023. Essentially, more money is leaving EU households than entering them.

Impact on EU Economies – A Mixed Bag

In 2023, personal transfers resulted in a surplus for 9 EU countries, indicating these nations received more money from abroad than they sent out. Among these, Croatia led the pack with a surplus representing 2.9% of its GDP, followed by Bulgaria (1.5%), Portugal (1.3%), and Romania (1.1%).

Conversely, Cyprus (-1.0%), Belgium (-0.7%), France (-0.6%), Greece, and Spain (each -0.5%) experienced the largest deficits, with personal transfers representing a notable outflow compared to their respective GDPs.

Source Dataset:

Source dataset: bop_rem6

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Personal transfers play a significant role in the global economy, impacting both sending and receiving countries. Stay informed about the latest developments in this area by exploring the source datasets and engaging with related research.