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The economy shrank an estimated 1.2% in 2001, 0.9% in 2002, grew 0.4% in 2003, and shrank by 3.5% in 2004. Suspended aid and loan disbursements totaled more than $500 million at the start of 2003. Haiti also suffers from rampant inflation, a lack of investment, and a severe trade deficit. In early 2005 Haiti paid its arrears to the World Bank, paving the way to reengagement with the Bank. The resumption of aid flows from all donors is alleviating but not ending the nation's bitter economic problems. Civil strife in 2004 combined with extensive damage from flooding in southern Haiti in May 2004 and Tropical Storm Jeanne in northwestern Haiti in September 2004 further bankrupt Haiti...
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