Prime Minister's Budget Framework Letter

The framework letter for the FY2018-2019 draft finance law, addressed to all authorising officers of the public administration.

Despite the fragilities of the Haitian economy, FY2017-2018 began on a better note than the preceding year, and the letter attributes an improvement in the main macroeconomic indicators to the political stability observed in the first half. The government describes itself as working to establish the conditions for strong and durable growth through key investments in productive capacity, in particular the progressive implementation of the post-disaster recovery plan, the reform of the energy sector, and the relaunch of the business climate reform plan. Reform initiatives in the financial sector and against corruption and contraband are to contribute to a more stable framework for economic and social progress.

The 2017-2018 budget assumed economic growth of the order of 3.9%. Despite a recovery in the main branches of activity and improvement in the macroeconomic indicators over the first half, performance remains insufficient and the letter expects a growth rate below the initial projection.

The indicators it cites are an increase in employment of 12.3% year on year in the first quarter, and a deceleration of year-on-year inflation to 12.9% in March 2018 from 15.4% in September 2017, together with an increase in overall household consumption.