According to Eurostat data for 2023 in relative terms Croatia, Latvia, Luxembourg and Romania were the most dependent EU members on inflows of personal transfers and compensation of employees.
Personal tranfers are deposits made into Croatia from people outside Croatia, for example money sent from Croatian’s working in Germany to relatives in Croatia.
Dependency rates are measured by showing the share of inflows in personal transfers and compensation of employees in relation to a respective country’s GDP. According to this, the highest dependency rates in the EU were observed for Croatia (7.2% of GDP), Latvia, Luxembourg (both 2.9% of GDP) and Romania (2.8% of GDP) in 2023 (see graph above), while the least reliant economies in the EU were Ireland (0.1% of GDP), Greece, Finland (both 0.2% of GDP) and the Netherlands (0.4% of GDP).
By comparison, our southeastern non-EU neighbours appeared much more dependent on this source of income: Kosovo (17.5% of GDP), Montenegro (10.7% of GDP) and Bosnia and Herzegovina (10.3% of GDP). Serbia was equal with Croatia (7.2% of GDP).
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