Remittance flow from Ukrainian citizens working abroad have topped the income from metallurgy product export and are many times larger than foreign direct investment in the country. This was stated by OPPOSITION PLATFORM — FOR LIFE MP Serhiy Lovochkin commenting on The World Bank’s report on migration in 2018.
“Ukrainians working abroad transferred over $14bln in 2018 to Ukraine, more than 11 percent of the country’s GDP. Similar share of remittance receipts has been reported for countries far from being flourishing. In CIS, only Tajikistan, Kyrgyzstan, and Moldova have the same share of remittance income towards their GDP, but these states never had developed manufacturing industries. While in Ukraine, the manufacturing industry is being destroyed on purpose, and this forces millions of our citizens seek opportunities to support their families from abroad,” Lovochkin said.
The politician said up to nine million Ukrainians work abroad seasonally or permanently, according to the Social Policy Ministry data. In 2018, remittance from them topped the income from foreign sales of metallurgy products ($11.6bln), the all-time leader of Ukrainian export.
“At the same time, foreign direct investment in the Ukrainian economy reach mere $2.4bln in 2018, i.e. six times less than the remittance from migrant workers; this is the outcome of the previous administration’s policy over the past five years. The policy that resulted in Ukraine being the poorest country in Europe,” Lovochkin said.
Lovochkin also said that the consolidated budget expenses on education reached $7.7bln, on healthcare $4.3bln, and these two budget items make up less than remittance over the same year.
“Social expenses would have been much higher if Ukrainian citizens worked in Ukraine and paid taxes to the Ukrainian budget. There is only one way to get those people back — through changing the strategic vector of the state development. By subordinating all other directions to the plan of peace restoration and economy revival, we will be able to make Ukraine a country whose people return, not leave,” the MP said.
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