Why are remittances from workers in New Caledonia important to Wallis and Futuna?

Remittances from expatriate workers in New Caledonia are vital to the economy of Wallis and Futuna because the territory is resource-poor and generates very little revenue from exports.1

Because the local economy relies heavily on subsistence farming and traditional customs that prioritize bartering over selling goods, there are limited opportunities for internal revenue generation. Consequently, the territory depends on external financial support, including French government subsidies and remittances sent home by the large population of Uvean and Futunan expatriates living abroad. These remittances serve as a critical economic asset; however, they also highlight a demographic challenge, as the islands' limited resources would be unable to support these expatriates if they were to return home.12