(2023) Haiti Second Review Under the Staff-Monitored Program - Press Release and Staff Report
Summary — The IMF completed the second and final review of Haiti's Staff-Monitored Program in May 2023, noting progress in governance reforms and macroeconomic stability despite challenging security and humanitarian conditions.
Key Findings
- IMF management approved the second and final review of Haiti's Staff-Monitored Program on May 30, 2023.
- Haiti faces severe humanitarian crisis with food price inflation affecting over 50% of population due to spillovers from Russia's invasion of Ukraine.
- Despite challenging conditions, authorities implemented important governance and anti-corruption reforms, tax administration improvements, and enhanced public finance management.
- Haiti met three of four end-December 2022 quantitative targets and four of five indicative targets for end-March 2023.
- Customs revenue reached historic highs due to improved revenue administration, though from a low base.
Full Description
The International Monetary Fund completed the second and final review of Haiti's Staff-Monitored Program (SMP) in May 2023, which began in June 2022. The program was designed to support Haiti's economic policy objectives and build a track record of reform implementation despite the country's fragile conditions.
Haiti faces severe challenges including a humanitarian crisis exacerbated by economic spillovers from Russia's invasion of Ukraine, leading to food price inflation and a hunger crisis affecting over 50% of the population. The dire security situation, with gangs controlling large parts of the capital and key infrastructure, has worsened fuel shortages and hampered economic activity.
Despite these challenging conditions, Haitian authorities demonstrated strong commitment to reforms under the SMP. Key achievements include governance and anti-corruption measures, improvements in tax and revenue administration, enhanced public finance management, strengthened central bank autonomy, and better data provision. The authorities adopted a new tax code and implemented various transparency measures.
The program helped maintain macroeconomic stability and enhanced transparency in public spending and the financial sector. Haiti met most quantitative targets and structural benchmarks, though some were achieved with delays. The authorities have expressed interest in another SMP to continue building on these reforms and maintain economic resilience.