(2024-06) Haiti 2024 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for Haiti
Summary — The IMF's 2024 Article IV consultation with Haiti addresses the country's unprecedented multidimensional crisis encompassing security, economic, humanitarian and social challenges. The report projects barely positive growth for 2025 and emphasizes the critical need for security normalization and international support.
Key Findings
- Haiti faces an unprecedented multidimensional crisis with gangs controlling 80% of the capital during March-May 2024.
- GDP growth projected to be barely positive at 1% in 2025, stabilizing at only 1.5% medium-term.
- Security deterioration has destroyed human and physical capital, leading to massive displacement and brain drain.
- Fiscal revenues are slowly recovering but remain insufficient for reconstruction and development needs.
- International support and security normalization are essential for economic recovery prospects.
Full Description
Haiti faces an unprecedented multidimensional crisis encompassing humanitarian, economic, social, and security problems. The economy has a low tax base and a large informal sector that relies heavily on volatile remittance flows. Since the 2019 Article IV consultation, Haiti has suffered multiple shocks including the pandemic, a devastating 2021 earthquake, cholera outbreaks, and economic spillovers from the Ukraine war leading to food crisis and acute hunger.
The severe deterioration of security over recent years has magnified these problems, with gangs controlling 80 percent of the capital during March-May 2024, paralyzing economic activity and leading to a surge in displaced people and brain drain. The security crisis has destroyed human and physical capital while disrupting supply chains and rekindling inflation pressures.
Haiti's macroeconomic outlook remains challenging with elevated uncertainty. Growth is projected to be barely positive in 2025 and stabilize at only 1.5 percent over the medium term, pending security improvements. The IMF Executive Board emphasized that normalization of security is essential for economic prospects and called for continued international support.
The authorities have shown commitment to reforms including passing budgets timely and efforts to increase fiscal revenue. However, the Board stressed the need for further revenue mobilization, enhanced public spending efficiency, and strengthening of social safety nets to protect the most vulnerable while preserving debt sustainability.