Foreigners are sending home billions of euros to their home countries, with the global remittance industry mostly seeing money flow from Western countries to second- and third-world countries on a global scale. In total, EU countries saw €52.4 billion sent abroad in 2024, according to the latest data from Eurostat.
These tens of billions being sent abroad may be benefiting foreign countries, but they are serving as a financial drag on European nations, many of which are already struggling with stagnating economic growth.
Before the advent of mass immigration, most European citizens had little or no connection with any non-EU countries. Wire transfers and remittances were much rarer, which meant that money stayed inside the country and circulated at home.
However, following the advent of mass migration to European nations, remittances have soared to record highs year after year.
In 2024, flows from EU resident households to non-EU resident households jumped to €52.1 billion, an increase of 6 percent compared to 2023, which saw €49.2 billion sent abroad. Far more is also sent out than is sent to EU resident households, totaling €14.8 billion.
There has been tremendous growth in remittances abroad, jumping 51 percent in just five years, dating back to 2019. Inflows have only grown 26 percent in the last five years, which means the difference between inflows and outflows has been growing every year, which now stands at €37.3 billion in 2024.
If the data is traced back all the way to 2000, a year when €15.1 billion was sent abroad, then there has been a 245% increase.
Major destinations for these outflows outside of Europe include India, Pakistan, and Nigeria.
Germany is the biggest source of remittances headed outside of the EU, but many other countries are also sending billions. Italy, for instance, sent €8.29 billion overseas, with leading recipient countries including Bangladesh (€1.4 billion), followed by Pakistan (€600 million) and Morocco (€575 million).
These outflows across Europe and the broader West represent a major drag on economies. These wages could be used as disposable income within the host nation, i.e., money spent on domestic goods and services, but they are instead flowing overseas.
