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Global Remittances on the Rise

May 16, 2022

This year, official remittance flows to low- and middle-income countries (LMICs) are predicted to rise by 4.2 percent to $630 billion. According to the World Bank’s latest Migration and Development Brief, this follows an almost record rebound of 8.6% in 2021.

In 2022, remittances to Ukraine, Europe’s and Central Asia’s largest recipient, are predicted to increase by more than 20%. However, remittances to many Central Asian countries, the main source of which is Russia, are expected to plummet. In many of these nations, these declines, combined with rising food, fertilizer, and oil prices, are anticipated to increase food security problems and exacerbate poverty.

During 2021, remittance inflows saw strong gains in Latin America and the Caribbean (25.3 percent), Sub-Saharan Africa (14.1 percent), Europe and Central Asia (7.8 percent), the Middle East and North Africa (7.6 percent), and South Asia (6.9 percent). Remittances to East Asia and the Pacific fell by 3.3 percent; although excluding China, remittances grew 2.5 percent. Excluding China, remittance flows have been the largest source of external finance for LMICs since 2015.

The top five recipient countries for remittances in 2021 were India, Mexico (replacing China), China, the Philippines, and Egypt. Among economies where remittance inflows stand at very high shares of GDP are Lebanon (54 percent), Tonga (44 percent), Tajikistan (34 percent), Kyrgyz Republic (33 percent), and Samoa (32 percent).

The war in Ukraine has affected the international payment systems with implications for cross-border remittance flows. The exclusion of Russia from SWIFT has added a national security dimension to participation in international payments systems.


Source: World Bank
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Unemployment rate in Turkey rose to 11.4% in Q1 of 2022

May 16, 2022

Labour Force Statistics, Quarter I: January – March, 2022


Source: Turkish Statistical Institute (TurkStat)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Selling prices in wholesale trade in Germany rose by 23.8% in April 2022 compared with April 2021

May 16, 2022

In April 2022, the selling prices in wholesale trade rose by 23.8% compared with April 2021. As reported by the Federal Statistical Office (Destatis) of Germany, this was the highest annual rate of change since the beginning of the calculation of the wholesale price indices in 1962. The annual rates of change in February 2022 and in January 2022 had been +22.6% and +16.6%, respectively.

The impact of the war in Ukraine on wholesale selling prices was observed in April 2022 especially in wholesale with raw materials and energy sources, but also with various food products.

The high annual rate of change for wholesale prices mainly derives from increased prices for raw materials and intermediate products. The largest impact on the annual rate of change in April 2022 had the price increase in wholesale trade of mineral oil products (+63.4%). The high price increase in wholesale trade of solid fuels (+70.9%), grain, unmanufactured tobacco, seeds etc. (+56.3%) as well as metals and metal ores (+55.7%) also contributed to the high rate of change in March 2022.


Source: Federal Statistical Office (Destatis)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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China unemployment rate near pandemic peak

May 16, 2022

China’s unemployment rate increased to 6.1 percent in April, the highest level since the early stages of the Covid-19 pandemic in February 2020.

It comes as the world’s second-largest economy experiences a steep downturn due to widening lockdowns.

Retailers and manufacturers were also heavily hit, according to official statistics.

In March and April, full or partial lockdowns were implemented in dozens of locations, including a lengthy shutdown of Shanghai’s business center.

The administration wants to keep the unemployment rate below 5.5 percent for the entire year.


Source: BBC
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Volume of retail trade up by 0.8% in the Euro Area and by 1.7% in the EU compared with March 2021

May 16, 2022

In March 2022, the seasonally adjusted volume of retail trade decreased by 0.4% in the euro area and by 0.2% in the EU, compared with February 2022, according to estimates from Eurostat, the statistical office of the European Union. In February 2022, the retail trade volume increased by 0.4% in the euro area and by 0.3% in the EU.

In March 2022 compared with March 2021, the calendar adjusted retail sales index increased by 0.8% in the euro area and by 1.7% in the EU.

In the euro area in March 2022, compared with March 2021, the volume of retail trade increased by 8.3% for automotive fuels, and by 2.8% for non-food products, while it fell by 2.5% for food, drinks and tobacco.

In the EU, the retail trade volume increased by 8.9% for automotive fuels, and by 4.0% for non-food products, while it fell by 2.1% for food, drinks and tobacco.

Among Member States for which data are available, the highest yearly increases in the total retail trade volume were registered in Slovenia (+25.6%), Estonia (+18.4%) and Malta (+16.4%). The largest decreases were observed in Denmark (-11.0%), Spain (-4.8%), and Belgium (-3.9%).


Source: Eurostat
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Industrial production in Turkey increased by 9.6% annually

May 14, 2022

Industrial Production Index of Turkey, March 2022


Source: Turkish Statistical Institute (TurkStat)
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Russia’s economy is expected to shrink in 2022 by 8-10%

May 13, 2022

Bank of Russia identifies main risks for its baseline scenario

According to the regulator, the uncertainty surrounding the Bank of Russia’s baseline scenario remains exceptionally high. According to the Bank of Russia, the scenario is highly dependent on the evolution of geopolitical variables as well as the economy’s ability to adjust to new circumstances.

The regulator listed increased external trade and financial restrictions, a more dramatic fall in the Russian economy’s potential than expected in the baseline scenario, and a rise in inflation expectations as the primary concerns.

Pro-inflationary risks, on the other hand, predominate in the medium term, “although their influence has lessened compared to the end of February,” according to the Bank of Russia. The regulator listed increased external trade and financial restrictions, a more dramatic fall in the Russian economy’s potential than expected in the baseline scenario, and a rise in inflation expectations as the primary concerns.

The volatility of the ruble exchange rate will continue to have a substantial impact on inflation and inflationary expectations.

According to the regulator, Russia’s economy in 2022 will shrink by 8-10%, in 2023 – within 0-3%. The Bank of Russia expects the economy to return to growth in 2024. Inflation in Russia in 2022 will grow to 18-23%. The rate will decline to 5-7% in 2023 and return to 4% in 2024.


Source: TASS – Russian News Agency
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Slovenia Proposes 5% Tax on Liquidation of Over €10k Cryptocurrency a Year

May 13, 2022

The government of Slovenia passed a bill imposing a 5% tax on natural persons who convert cryptocurrencies into fiat currency or buy goods or services, but only if the amount reaches EUR 10,000 per year.

The government proposed the law passed quickly in the National Assembly. If passed, the tax would be applied to amounts redeemed since it took effect.

The Finance Ministry forecasts that the new taxation will bring in at least EUR 1 million per year to the budget in the first several years.

The new tax would be imposed on natural persons who pay taxes in Slovenia when they trade cryptocurrency for fiat currency and deposit the proceeds in a transaction account, or when they use cryptocurrency to buy goods, services, or other assets.

The tax would not apply to legal entities with cryptocurrencies as assets or to people with cryptocurrency as business assets.

Regardless of the number of cryptocurrency transactions made, a natural person who buys and sells cryptocurrency in their own name and on their own account is not regarded to be conducting business.

Unless there is a documented loss, the tax responsibility arises when the virtual money is redeemed. At the same time, each natural person might get a tax-free redemption of EUR 10,000 in virtual currencies per year.

The tax base would be calculated by subtracting the EUR 10,000 exemption from the total value of every cryptocurrencies sold in a calendar year. A 5% base tax would be paid on the amount.

Individuals in question would be able to file a tax return once a year or whenever virtual currency was liquidated. In any case, they’d have to pay the tax within 30 days after filing the return.


Source: Total Slovenia News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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The huge increase in rental prices surpassed Hungary’s 21-year high inflation

May 13, 2022

Rents in Budapest have increased by 35% in a year, while they have jumped by about 30% in certain rural cities. This astounding growth surpasses Hungary’s 21-year high inflation rate. In May, Budapest rents reached a new high. Prices in Budapest increased by 2.9 percent year over year, while prices nationwide increased by 2.3 percent, meaning annual rises of 18.2 percent and 19 percent, respectively.

However, when compared to the same period last year, the rental price increase is much more extreme. Budapest’s average rent climbed by 35% in a year, whereas most major cities had increases in the double digits, ranging from 10% to 30% on average.

The significant decline in supply is one of the reasons for the huge price increase in the rental market. The number of persons seeking for rentals in Hungary was extremely high in March and April. In comparison to March 2019, demand in the market increased by 14% nationwide. This is due in part to the desire of many Ukrainian refugees to settle in Hungary, as well as the rise in mortgage interest rates.


Source: Daily News Hungary
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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Overall external trade of Serbia increased by 30.0% in the period January-March 2022

May 13, 2022

According to the data of Statistical Office of the Republic of Serbia, the overall external trade in Serbia for the period January-March 2022 amounted to:

– USD 17030.9 million – which was an increase of 30.0% compared to the same period 2021;

– EUR 15147.5 million – which was an increase of 39.6% compared to the same period 2021.

The value of exports amounted to USD 6986.4 million, which was 19.7% increase when compared to the same period last year, while the value of imports amounted to USD 10044.5 million, which was 38.4% increase relative to the same period last year.

Expressed in Euros, the value of exports amounted to EUR 6215.8 million, which was 28.5% increase, compared to the same period last year. The value of imports amounted to EUR 8931.7 million, which was 48.5% increase when compared to the same period last year.

The deficit amounted to USD 3058.1 million, which was an increase of 115.2% in relation to the same period last year. The deficit expressed in Euros amounted to 2715.9 million, which was an increase of 130.4% compared to the same period last year.

The export – import ratio equalled 69.6% and was lower if compared to the same period last year when it was 80.4%.

The external trade in the reference period noted the highest level with the countries with which Serbia has signed agreements on free trade. European Union member countries account for 60.5% of total external trade.


Source: Statistical Office of the Republic of Serbia
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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