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Sunday 25.09.2016 | Name days: Rauls, Rodrigo

IMF: mass migration from Eastern Europe has hampered region’s growth

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUMass economic migration from Eastern Europe to wealthier countries benefited the host countries and delayed growth in the migrants’ home countries, as stated in notes of discussions held by the International Monetary Fund on Wednesday.

Ever since the collapse of the Communist order, nearly 20 million people have left Eastern Europe, which is approximately 5.5% of the total population, as mentioned in notes, which do not express IMF’s official opinion.

«Because of the sizeable share of skilled emigrants, it has likely benefited the main receiving countries in the EU and, therefore, the EU as a whole. Labour outflows tend to reduce the sending countries’ GDP per capita, with the size of the impact depending on… the age and skill composition of migrants.» – the notes mention.

It has been calculated that mass emigration from central and south-east Europe from 1995 to 2012 has hampered this region’s economic growth rate by an average of seven percentage points.

Mass emigration of qualified labour force ‘increases the fiscal burden’ which is formed from distorted proportions of employed and unemployed people.

IMF’s report also warns that the outflow of well-educated people can potentially slow down the rate of progress and innovations in their home countries.

IMF’s notes also mention that the money emigrants send home also serves to reduce negative consequences of emigration. It is said, however, that these money transfers can potentially ruin the recipients’ work ethic.

IMF also mentions that the negative effect emigration has on GDP growth will continue if the current predictions in regards to emigration until 2030 are true. Total economic losses could reach even 9%.

The most severe emigration losses could be felt by Baltics, Bulgaria and Romania. Countries that take in immigrants, including the Czech Republic, Russia and Hungary, could gain sizeable economic benefits.

Ref: 102.109.109.6001


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