Remittance Growth Continues: U.S. Leads While Inflows from Russia Decline

In April 2025, the total volume of remittances sent to Georgia reached $295.54 million, representing a 6.1% (or $17 million) increase compared to the same period last year. This upward trend underscores the enduring and growing role of emigrants in supporting Georgia’s economic vitality—especially in a context where domestic economic activity often depends heavily on external financial inflows.

The current structure of remittances shows the United States maintaining its lead, with $54 million sent to Georgia—marking a 17% year-over-year increase. Italy ranks second with $50.2 million and a 10% annual growth. The rising inflows from these countries reflect not only the economic stability of Georgian emigrants but also their engagement in more formal labor arrangements, which positively affect the volume and traceability of financial transfers.

In contrast, Russia’s position has weakened significantly. Remittances from Russia fell by 19%, amounting to $39.9 million. This decline points to shifting geopolitical dynamics, including possible transactional restrictions and a noticeable reduction in the number of Georgian workers employed in Russia. The drop in remittances from Russia further highlights a broader pivot in Georgia’s economy toward Western-oriented financial channels.

Other countries rounding out the top ten include Germany ($24.8 million; +20%), Greece ($24.6 million; +12%), and Israel ($22.2 million; +11%)—all nations with historically strong Georgian emigrant communities that continue to provide steady support via remittances. Notably, remittances from Spain and Kyrgyzstan have surged by 40%, possibly signaling a new wave of labor migration to these countries or the increased formalization of existing remittance flows.

In contrast to this overall growth, Kazakhstan stands out with a sharp 42% decline in remittances, totaling just $7.2 million. This could stem from a slowdown in Kazakhstan’s domestic economy, increased labor market competition, or stricter regulatory measures.

Overall, remittances remain a crucial source of income for Georgia’s economy. The evolving structure—marked by growing reliance on Western countries and a decline in dependence on Russia—suggests the emergence of a new geographic configuration of financial flows. In the long term, this shift may reduce the country’s economic vulnerability to any single region. At the same time, it places greater responsibility on economic policy: more of these funds should be redirected into investments, small business development, and the strengthening of Georgia’s economic foundations.