Transfers in Haiti, accounted for more than 30.7% of GDP in 2018

According to the World Bank, remittances from the diaspora to Haiti reached a record level in 2018, amounting to 2.986 billion dollars (+ 9.70% compared to 2017) or 30.7% of Gross Domestic Product (GDP ) of Haiti.

The ranking of the main beneficiary countries in the region is dominated by #1 Mexico ($36 billion received in 2018), #2 Guatemala ($ 9.5 billion) and #3. The Dominican Republic ($ 6.7 billion), Haiti ranks 7th.

Recall that Haiti crossed for the first time the threshold of $2 billion in transfers in 2015 (2.1 billion) and since then only experienced increases of 2.3 billion in 2016; 2.7 billion in 2017 and 2.9 billion in 2018. If in comparison, the Dominican Republic is experiencing the same growth trajectory, the 6.7 billion received in 2018 however this amount represent only 8.4% of the GDP of the Dominican Republic.

In contrast, the money transfers sent by Haiti outward according to the World Bank amounted in 2017 to $298 million (3.5% of GDP) against $ 635 million for our Dominican care (0.8% of GDP).

According to the “Remittance Prices Worldwide” database the overall average cost of sending $200 remained high on average at around 7% in the first quarter of 2019, still far from the target of 3% referred to in 2030, while transfer fees for many African countries and small Pacific islands remain above 10%. Banks are the most expensive intermediaries charging an average of 11% in the first quarter of 2019.

In 2019, the World Bank estimates that transfers to low-income countries should become their primary source of external financing.

TB/ HaitiLibre

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