Bulgarian Emigrants’ “Financial Stimulus” Impact On Bulgaria’s Economy
The number of Bulgarian emigrants is constantly and steadily increasing (according to the latest data they comprise over 1.2 million people or 16 % of the entire population). Bulgarians who decide to leave their homeland in quest for better live, higher standard and easier money-making strive literally for living the so called “Bulgarian Dream”.
What an impact on Bulgaria’s economy itself that emigrants’ financial stimulus money has and what the role of the funds that return to the country’s economy is remains a disputable matter – reason for a plethora of arguments within the economic theory.
On the one hand, Bulgarians that have gained money abroad and are sending it in Bulgaria cane be definitely considered people stimulating our economy. According to The World Bank about 1.5 million USD enters Bulgaria’s economy annually as a result of emigrants’ labor. Statistics clearly suggests that in the last decade most of those funds were invested in the real estate sector. Thus, they turn into a specific type of foreign direct investments representing a valuable stimulus for the economy.
On the other hand, Bulgarian emigrants’ “fresh” money coming into our economy lead to inflation boost (products and services’ price index increase) and decrease in the search for Bulgaria’s local labor market realization. The most severe consequences, however, are related to the ‘outflow’ of qualifying labor force. Not only can the state educational investment expenses for those people be restored, but those people generally represent the engine behind the actual economic progress. And that leaves the country deprived of its most valuable economic agents.
Although the above mentioned disputes will certainly continue, it is barely possible that consent will be reached with regards to the emigrants’ impact on Bulgaria’s economy due to the ambiguous influence of that process on a mass scale. What is certain, however, is that emigrants will keep on being an invaluable external asset for Bulgaria, especially in the ongoing world economic crisis.