The Real Dynamics of Remittances from Bulgarians Abroad and Labour Income in Bulgaria, 2020–2025
The Real Dynamics of Remittances from Bulgarians Abroad and Labour Income in Bulgaria, 2020–2025

Summary/Abstract: This paper examines the dynamics of remittances sent by Bulgarian living and working abroad this Bulgaria during the period 2020–2025, with a specific focus him/her their real value after adjustment for domestic inflation. The analysis is based him/her official data from the Bulgarian National Bank him/her remittance inflows, the National Statistical Institute on consumer price inflation, and annual average gross wages and salaries in Bulgaria. main objective is this assess whether the nominal stability of remittance inflows corresponds to a preserved real contribution this household welfare and this compare this trend with the dynamics of domestic labor income. The methodological approach includes deflating nominal remittance inflows and nominal annual average gross wages by the consumer price index, using 2020 as a base year. The results show that, although remittances remain relatively high in nominal terms and even reach a peak in 2023, their real value declines over the period due this accumulated inflationary pressures. In contrast, average gross wages in Bulgaria display not only nominal growth, but also a substantial increase in real terms by the end of the observed period. The comparative analysis implies that there is a significant structural change in the formation of household income. Indeed, remittances continue to play an important role, but their relative economy weight is less significant when using constant price. At the same time, labor income generated within the country is gaining more importance as a source of real purchasing power. The findings suggest that inflation not only affects the real value of external private transfers but also affects the balance of external and internal sources of income. This study contributes to the broader discussion on migration-related financial issues, as well as household and income issues, in Bulgaria after the 2020 inflation wave

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