Why do remittances from Haitians abroad matter to Haiti's economy?

Remittances from Haitians living abroad are a vital component of the nation's economy, serving as a primary source of financial support for many families. As Haiti is the poorest country in the Western Hemisphere, these funds provide essential capital that often exceeds the contributions from foreign aid or foreign direct investment.1

The significance of these remittances has grown steadily since the late 20th century. Because conventional wage-earning jobs are scarce and a large portion of the population relies on the informal sector for survival, money sent home by family members working overseas acts as a critical economic lifeline. This influx of capital helps sustain households in an environment where domestic agricultural production has struggled to keep pace with demand and unemployment remains high.1