Financial Crime World

Haiti’s Economic Performance: Challenges and Progress

Economic Outlook Remains Challenging

Key Indicators

  • Growth: Haiti’s economic growth is expected to remain muted at 0.1% in FY2023.
  • Inflation: Inflation is projected to moderate gradually to about 30% by the end of FY2023.
  • Fiscal Deficit: The fiscal deficit of the National Fund for Social and Economic Development (NFPS) is projected at 1.8% of GDP in FY2023.

Structural Reforms: Progress and Challenges

Key Achievements

  • Improving governance and public financial management
  • Strengthening tax administration
  • Finalizing amendments to the central bank law
  • Drafting a new anti-money laundering (AML)/combating the financing of terrorism (CFT) decree

Fiscal Policy Discussions: Improving Revenue Collection and Social Spending

Key Objectives

  • Improve revenue collection and reduce reliance on monetary financing of the budget
  • Strengthen social spending and improve transparency in its use
  • Implement a medium-term budget framework to anchor the NFPS deficit

Risks to Economic Growth

Key Risks

  • Security concerns
  • Political instability
  • Gang-related disruptions to economic activity
  • A further spread of cholera
  • Worsening of the hunger crisis
  • Extreme natural disasters

Conclusion

The report highlights Haiti’s ongoing challenges in achieving sustainable economic growth and reducing poverty, but also notes progress made in implementing structural reforms and improving fiscal policy.