Diaspora remittances represented 34% of Haiti's GDP in 2017

Posted by AP on Saturday, January 27, 2018 Under: Economy
Related image

Family remittances to 17 Latin American and the Caribbean countries grew over eight percent from 2016 to 2017, reaching US$75 billion and, in the case of Haiti, represent 34 percent of gross domestic product (GDP), according to a report published on Wednesday by the Inter-American Dialogue.

This increase is substantial and far exceeds the World Bank’s forecast 1.2 percent economic growth for the entire region. In terms of scale, remittance growth has been nearly as large as export growth (nine percent) in 2017.

Growth in remittances is being driven predominantly by migration patterns in countries such as Haiti, the Dominican Republic, Guatemala, Honduras, El Salvador, and Colombia, which represent 45 percent of flows in remittances and experienced growth of over ten percent last year. In fact, for Central America and the Caribbean, the projected 3.5 percent economic growth for these countries is due largely to the combined 15 percent increase in remittances.

Other drivers of remittance growth include the continued demand for foreign labour in the United States economy, and to a lesser extent the dollar devaluations in countries like Mexico, the Dominican Republic, and Costa Rica.

According to Manuel Orozco, director of migration, author of the report, the amount of money transferred will continue to have important effects on Latin American and Caribbean countries, noting that these transfers, for ten out of 17 countries, represent at least five percent of their GDP.

In addition to Haiti at 33.6 percent, other major remittances contributions to regional GDP include Dominican Republic (7.8 percent); Guatemala (11.5 percent); Honduras (19.5 percent); Jamaica (16.7 percent); and Nicaragua (10.2 percent).

In : Economy