Recent Economic Developments in Haiti

R E S T R I C T E D R e p o r t N o. W.H. 45 This document was prepared for internal use in the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT RECENT ECONOMIC DEVELOPMENTS IN HAITI April 26, 1956 Department of Operations Western Hemisphere Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized TABLE OF CONTENTS Page BASIC DATA INIRODUCTION 1 RECENT DEVELOPMENTS 1 Balance of Payments 1 Domestic Finance 2 PROSPFCTS 3 Domestic Finance 4 Balance of Payments 4 Exports 4 Imports Debt CONCLUSIO 1 6 STATISTICAL APPENDIX Table 1 Summary-of external public debt Table 2 Estimated contractual service payments on external public debt Table 3 Value of exports, 1950-1955 Table 4 Volume of exports, 1950-1955 Table 5 Unit value of major exports, 1950-1955 Table 6 Iourism, 195o-1955 Table 7 Value of imports, 1950-1955 Table 8 Geographical distribution of merchandise trade, 1950-1955 Table 9 Balance of payments, 1950-1955 Table 10 Government budget, 1950-1955 Table 11 Public investments in Haiti, 195o-1955 Table 12 Swmmary balance sheet of the National Bank, 1952-1956 Table 13 Domestic ipney supply, 1950-1955 BA, SIC DATA Area 10,700 square miles Population (195C census) 3,112,000 Estimated annual increase l,5,% Trade Fiscal 195 1 Fiscal 1955 (rnillion U.S.. dollars) Exports a 56.7 $ 34.9 L1nports (c.i.f) 47.6 39.2 Balance 9.0 -b.3 Exch,nge reservcs ofi-National Bank .j 12.3 (1955) $ 13.8 (1956) (February 29) Principal exports Coffee 78%, 66% Sisal 9% 15% Cacao 3%vo 3% Sugar 2% 3% Budget Revenues .32.2 : 29.5 Expenditures 35.o 34.7 Balance -2.8 -5.2 External public debt (February 29, 1956) Total W h1.0 Long-term 30.8 1Iedium-term 10.2 INTRODUCTION 1. The purnose of this report is to review and bring up-to-date the Bank's appraisal of Haiti's economic position and prospects, previously set forth in "The Economy of Haiti," Q'.H. 26 B, August 5, 195L, 2. Haiti, it rill be recalled, is a small mountainous tropical country in the Caribbean having the highest density of population in all the American republics. Formerly one of the richest of colonial territories, its standard of living, per capita trade, and proportion of urbanized population are now a!noung the lovwest in Latin lierica. More than four-fifths of the people are illiterate. Population has been growing but because of soil erosion and ex- haustion, the already relatively scarce land resources have been declining. Agriculture, Haiti's principal economic activity, is carried on principally by small peasant farners in rather primitive ways. Output per capita has been more or less stationary for many years. The apparent postwar improvement in Haiti's economic position has been due almost entirely to the rise in coffee prices, and not to increasing output. 3. Coffee, which grows more or less wild on the highland slopes with yields per tree lovier than in most coffee-growing countries, is the principal export crop, accountin. for somne three-fourths of total exports. Sisal is the next most important export crop. Despite the predominance of subsistence farming, food has been accountinc for almost one-fourth of total imilports. Industry is still very linited, consisting nainly of the processing of agricultural pro- ducts such as sugar cane, sisal, essential oils, cotton seed, and -Imall '.1 consumers' industries. But tourism h-ias been growving rapidly. Aft r coffee, it is nowi Haiti's lar,est single earner of foreign exchanEt e. RECzNT -DEVTL>LOR:1EfITS Balance of Payments As a result of record exports, a continued expansion of tourism, an unprecedented balance of payments surplue on current account, and near peak exchz;nge reserves, Haiti finished fiscal 1951 /1 in fair strength. At the very beginninK of fiscal 1955, howvever, it was estimated that the new coffee crop then being harvested would be some 15-20,, smaller than the previous crop and that this crop would have to be sold at a substantially lower average price than in the previous year. Two weeks after the fiscal year began these g-loomy p.ospects were inter.sified when the winds, rain and floods of "Hurricane Hazel" damiaged crops, farms and public facilities over large areas of the country. Fiscal 1955 was thus a difficult year for Haiti, with exports one-third lower in value than in the preceding year. -5. 'ihe resultant strain on Haiti's exchlange resources was mitigated in several ways. Imports declined in response to the fall in export incomes, though by a smaller amount; revenues from tourism increased,and Haiti received a substantial amount of U.S. aid. The United States goverment's grant program, in part for relief and rehabilitation and in part for development projects, amounted to .,;750,000 for the period July 1954 through June 1955 and to w4 millon A October 1, 1953 -September 30, 1954 -2 - f_r the p-iid Julqy 1`55 through June 1956. The Export-Import Bank also loaned an additional $13 million to Haiti for the Artibonite River project. Although all of these U.S. funds have not yet been disbursed, and only part of the dis- bursements provide foreign exchange by being made for local currency expendit- ures, this U.S. assistance contributed to Haiti's exchange reserves. Also U.S. technical assistance slaries are currently providing about $1 million annually in free exchange. 6. But all these developments only moderated the strain on the National Bank's reserves. Ihese still declined from a near peak of $12 million at the end of September 1954 to $9.5 million one year later, even with the help of a $2 million short-term advance obtained from the Chase National Bank oh September 26 to bolster the reserve position. 7. Since September, however, some considerable improvement appears to have taken place. The February 29, 1956 reserves, at $13.8 million even after deducting that part of the Chase National Bank loan still to be repaid, were $1.5 million higher than they were twelve months before. Domestic Finance 8. The difficulties of fiscal 1955 were also reflected in the govern- ment's budget. Government revenues declined slightly from their 1954 levels, which is not surprising in viewi of,the fact that some two-thirds of the govern- ment's revenues are derived from taxes on imports and exports. As there was no significant change in the level of government expenditures, the government's budgetary deficit increased from its 1954 level by almost the same amount as its revenues declined. The deficit for fiscal 1955 was equivalent to $5.2 million, or 18% of the governmentts cash expenditures for the year. This de- ficit is substantially greater than the $2.7 -$3.1 0iJlion annual deficits recorded during the fiscal years 1952 through 1954. -' 9. As there is some doubt about Haiti's method of classifying budgetary expenditures,., it is difficult to ascribe these deficits specifically to the investment program or to the government's ordinary administrative outlays. Both categories of expenditures appear to have been rising, although the growth in revenues prior to fiscal 1955 was sufficient to cover current expenditures and still leave a small surplus for investment. 10. There is little doubt, however, that these deficits have weakened Haiti's current financial position even though they were used, in part, to 1/ Haiti's true deficits may have been as much as $1 million less than the amounts shown here; it has not been possible, on the basis of available statistics, to identify the amortization component of debt service payments which are reported as government expenditures. -3- i-.-:cn e devrec-rent projects -ohich will ultimately raise agricultural output and incomes, exports, and government revenues. The reason is that they have been financed almost entirely by inflationary borrowiing from the National Bank. The National Bank's outstanding loans and investments to the government rose by $5.9 million during fiscal 1955; for the fiscal years 1952 through 1955, they rose by $10.6 million. For Haiti, where the local currency circulates inter- changabJ., vwith United States dollars and is at present freely convertible into dollars,/cumulative credit creation of this kind can be dangerous. It inevitab- ly leads to a loss of reserves and leaves the National Bank exposed to crises of confidence. Furthermore, since the government has now become the principal borrower of the Bank and most of the Bank's loans to the government have been made against long-term bonds rather than in the form of short-term advances, the National Bank has lost much of its freedom to protect its reserves by reducing credit as the need arises. 11. These budgetary deficits, it should be noted, do not include invest- ment expenditures which have been financed through external borrowing. Ihe gap between the government's ordinary revenues and its total expenditures, including thosefinanced from abroad, would be very much greater than the deficits referred to above. This wider gap is not significant in the inflationary sense, for there are offsetting imports; the domestic expenditures that accompanied these externally-financed investment projects have presumably already been reflected in the budget. But it has further weakened Haiti's external financial position and prospects because much of the borrowing was in the form of short-term suppliers' credits due to be repaid in 1956 and 1957. Almost one-half of Haiti's $10.2 million of privately-placed debt outstanding at February 29, 1956 is scheduled to be repaid during the current calendar year, and more than one-half of the remainder is due to be amortized during 1957. Service payments due on this category of debt during Haiti's current financial difficulties will account for the bulk of her total debt service. The burden on the budget, and on the exchange reserves, which these payments represent is correspondingly severe. PROSPECTS 12. Though no spectacular changes are in prospect, some development activity is going on. Ihe expansion in tourism has been very rapid, and is stimulating the growth of associated local industries. An American mining corporation is about to begin the production of bauxite on a fairly large scale, and prospecting for copper has recently met with encouraging results. The Artibonite Valley irrigation and flood control project should eventually make possible a substantial increase of agricultural production, though the project has turned out to be far more costly than originally expected and will take many years to exert its full effects. It is also contemplated that the im- portant hydroelectric power potentialities of this project should be developed as soon as market and other conditions permiat. Highway construction, which in recent years has been more rapid than ever before, should also help increase agricultural output by reducing1ransport costs and preventing spoilage, though it should be noted that the benefits to the economy could easily be lost if construction projects continue to be poorly executed, needlessly costly, and poorly maintained. 1/ Ihe gourde has since 1919 been convertible into dollars at the fixed rate of 5 gourdes to 1 dollar. 13. Development activity during the next few years, however, will ne- cessarily be retarded by the difficult financial prospects that Haiti now faces unless the United States aid program should be continued on a quite substantial scale. Domestic Finance 14. Haiti's public expenditures clearly need to be brought more closely into line writh the resources ordinarily available to the government. Adjust- ments in this direction will undoubtedly pose serious problems for the Haitian government, but the alternatives would be even more serious. Further resort to National Bank credit could give rise to increased imports and precipitate a crisis in Haitian external finances. Excessive resort to external borrowing would not only place a heavy burden on future exchange earnings; it would also add further inflexibilities to the domestic budget and thus only aggravate the government's fiscal difficulties in future years. In calendar 1956, interest and amortization on the known external public debt outstanding at February 29, 1956 will absorb almost 25% of Haiti's probable budget revenues of about $30 million. This proportion will fall to about 17% in 1957, declining more slowly thereafter, but it will still exceed 10% through 1959. Balance of Payments 15. Vvith no expectations of rapid growth in the volume of Haiti's exports and with somewhat unfavorable price prospects for coffee, the major export, Haiti's external accounts will also have to be balanced during the next few years at lower levels than in the recent past. Apart from the margin provided by Haiti's reserves and by foreign assistance, Haiti's imports will have to be limited to its current earnings from abroad. New private capital inflows will przobably be unimportant unless recent mineral exploration proves to be sig-.' rnificant. 6. Exports. The 31,800 metric tons of coffee exported during fiscal 1952 and 1954 was generally regarded as unusual. Similar peaks have been registered at vRrious times during the past twenty-five years but, in general, the record appears to reflect year to year fluctuations around a fairly constant level. Ihe average for the postwar decade -- fiscal 1945 through 1954 -- in which both terminal years were peak coffee export years, was 26,700 tons. As coffee is produced in Haiti under fairly primitive conditions by many small producers who also produce other crops, there in little reason to expect that this level will increase dramatically. Assuming that the current efforts to raise coffee production may, during the next few years, raise the average annual volume of coffee exports to 28,000 metric tons, and that the price of Haitian coffee in an uncontrolled free market will decline to approximately $0.90 per kilo ($0.41 per pound) by 1960, Haiti may expect to earn $25 million from coffee exports in 1960, or only slight'y more than in 1950. -5 - 17. Due to the recent and persistent decline in the price received for sial, the output of this fiber, which had expanded rapidly after the war until 1950, has been falling. Most of the recent drop in output has reflected the withdrawal of marginal producers, however; unlike coffee, three large producers account for the bulk of sisal production. Unless there is a further sustained fall in price, the present producers are expected to remain active and sisal production should approximate 25,000 tons. At the average current price of $0.17 per kilogram, sisal exports may be expected to produce $4 million annually in the coming years, roughly the same as in fiscal 1953 and 1954. 18. Haiti's other exports, which are rather small individually, have been earning about $8 million annual'y. They include sugar, cotton, cacao, bananas, essential oils, and handicraft products. Sugar and banana exports have been declining steadily but this decline should be reversed in the face of specific government efforts to this end. Together with the exchange earnings expected from bauxite, the total value of this group of exports should thus still remain at least at $8 million. 19. Accordingly, Haiti may expect total export receipts of about $37 million by 1960. But gross exchange earnings would be larger because of rapidly increasing tourist revenues; these revenues approached $6 million during fiscal 1955 and are expected to continue to increase steadily, to some $10 m']lion by 1960. On this basis, and without allowing for the possibility of ce-ntinuing grant aid from the U.S., haiti's gross foreign exchange receipts r`ayJ in 1960 be expected to approximate $47 million. 20. Imports. This estimated level of external earnings would require a reduction in Haitits recent level of exchange expenditures unless foreign aid centinues to be available on a substantial scale. 'uith proper monetary and fiscal measures Haiti should be able to keep exchange expenditures within the limnhts set by exchange earnings. Its investment program, however, must be -istic, avoiding undue internal expansion and external commitments. In any z:se, the position will remain difficult during the next few years, unless further grant aid assistance from the United States alleviates the pressure. 21. Debt. Haiti's external debt has increased substantially during the past two years, from $25 million at the end of 1953 to $41 million at February 29, 1956. Of the $6.6 million of dollar obligations to foreign contractors cutstanding on December 31, 1953, $1.9 million had been paid off by September 30, 1954, but new commitments undertaken since then have raised the total again, to $9.8 million. haiti's obligations to foreign governments, which consist almost entirely of debt to the Export-Import Bank, have increased from $17.9 million to $30.7 million; two new Export-Import Bank commitments totalling $13 million for the Artibonite River project accounted for this entire increase. In connection with the most recent increase of $6 million in the Artibonite loan, A/however, the Eximbank moderated the terms of the previous loans in such 1/ This loan is not yet a contractual obligation of the Haitian government, but it has been included here because it has already been authorized by the Export-Import Bank, and is expected to be ratified by the Haitian parliament in the near future. a way as to avoid adding to Haiti's annual burden of debt service. 22. Haiti also has $11 million of publicly-issued bonds outstanding which are payable either in gourdes or dollars at the option of the holders, These bonds have not been included in Haiti's external debt because almost all of them are held by the National Bank and government agencies and the Haitian government has undertaken to see that they do not find their way onto external markets. They are, however, shown as a contingent liability in the debt tables. CONCLUSION 23. In its broad outlines, the previous appraisal of the Haitian economy still remairs valid. The Haitian economy has not been growing very rapidly. Because of poorer prospects for coffee prices, Haiti's immediate economic pros- pects have, in fact, deteriorated since the last economic report was written, even though from all reports Haiti has recovered from the damage inflicted by the hurricane and may accordingly expect her financial difficulties to be less acute than they have been in the immediate past. The probable level of exchange during the next few years is lower than was earlier envisaged, and because of the government's dependence for revenues on import and export taxes, budgetary difficulties will continue to be at least as delicate as indicated in the last report. In the longer time period in which the expansionary elements in Haiti's balance of payments should not be offset by falling export prices, Haiti's economic prospects appear less restricted. But a more precise outline of these prospects must await an appraisal of the ultimate effects on production and incomes of Haiti's recently expanded development efforts. 24. Service on Haitits existing long-term external debt will require $2.8 million in the peak year 1960. This sum is moderate, amounting to 9% of probable budgetary revenues, and 6% of expected gross exchange receipts. But Haiti also has medium_term debt which, although equal to only 25% of the long- term debt, bulks large in the years just ahead with service payments of $5.5 million in 1956 and $2.7 illion in 1957. Total debt service is thus at its peak of $7.1 million this current year, and at its next highest peak of $5.2 million in 1957. This represents a very substantial burden; annual service payments during 1956 and 1957 will absorb some 12% of Haiti's probable gross exchange earnings and some 20% of her probable budgetary revenues. During these '-wo years, Haiti will have to pay as much as is scheduled during the following f-ir years. 2>. With very firm financial discipline, and with the exchange and budgetary assistance to be provided by United States aid (including financing of local currency expenditures on existing investment projects) Haiti should be able to meet these obligations. But the margins are narrow, and Haiti may find it necessary to look abroad to the International Monetary Fund or elsewhere for some stand-by assistance. Once over this difficult period, however, greater ease may be expected. -7- 26. Ihe $2.6 million loan now proposed for the highway maintenance project would call for service of $0.2 million in 1959, and $0.4 million there- after through 1966. This would raise the presently-scheduled debt service in 1960 to $3.4 million or some 7% of Haiti's expected exchange earnings. Nhile this would not be excessive, haiti must view further external debt obligations with great caution, especially insofar as they mightcall for the initiation of debt service before 1960. Commencing about then, a margin should emerge against which moderately substantial new debts might be incurred, provided that this borrowing takes the form of long-term debt bearing a relatively low annual rate of debt service. Haiti cannot afford to incur large medium-term debts involving heavy service reouirements per dollar of invested capital. TABLE 1 HAITI: SUivflviARY OF EXTERNAL PUBLIC DEBT National and Government Guaranteed Debt (Amounts in thousands of U.S. dollars) Item Debt outstanding February 29, 1956 TOTAL EXISTING EXTERNAL PUBLIC DEBT (All U.S. dollars) 40,975 Disbursed and still outstanding 34,112 Undisbursed 6,863 Publicly-issued ,bonds 100 Privately-placed debt 10,216 U.S. Government loans 30,659 Disbursed and still outstaiding 23,796 Undisbursed 6,863 CONTINGENT LIABILITY ARISING FROM1 FMRUNT INTERIEUR 11,023 Source: IBRD -Economic Staff j This amount includes a $6,000,000 addition to the Export-Import Bank's Artibonite Valley loan which, though not yet a contractual obligation of the Haitian government, has already been authorized by the Export-Import Bank and is expected to be ratified by the Haitian parliament wirthin the near future. 2/ Represents the following: $3,000,000 Emprunt Interieur 5%, 1956-1960 $2,023,000 $10,000,000 Emprunt Interieur 5%, 1954-1964 9,000,000 $i1.,02_3,6000 TABLE 2 HAITI: ESTIIAALD CONTRACTUAL SERVICI NYM'NTS ON THE EXTERNAL PUBLIC DEBT & National ai d Govermnent Guaranteed Debt (In thousands of U.S. dollars) Privately-placed debt Other debt /3 Total existing debt/ 3 Year WbF5iTt- Payments during year ut-r Paymetsdurngyea Debt out- Payments during year standing Amorti- In- Total standing Amorti- In- Total standing Arnorti- In- TotalJanuary 1 zation terest January 1 zation terest January l. zation terest 1956 10,216 2 5,503 182 5,685 30,650 L2 538 893 1,431 40,866 /2 6,041 1,075 7,116195? 5,387 2,699 108 2,807 30,162 1,302 1,024 2,344 35,549 4,019 1,132 5,151 L'958 2,688 944 42 986 28,842 1,499 1,031 2,530 31,530 2,443 1,073 3,5161959 1,744 1)189 32 1,221 27,343 1,643 981 2,624 29,087 2,832 1,013 3,8451g6o 555 255 22 277 25,700 1,837 925 2,762 26,255 2,092 947 3,0391961 300 150 12 162 23,863 1 ,837 857 2,694 24,163 1,987 869 2,8561Q62 150 150 6 156 22,026 1,838 793 2,631 22,176 1,988 799 2,7871.963 20,188 1,837 728 2,565 20,188 1,837 728 2,5651964 18,351 1,838 662 2,500 18,351 1,838 662 2,500 965 16,513 1,838 596 2,434 16,513 1,838 596 2,434i966 14,675 1,836 532 2,368 14j,675 1,836 532 2,3681.967 12,839 1,755 466 2,221 12,839 1,755 466 2,2211968 11,084 1,501 406 1,207 11,084 1,501 406 1,9071969 9,583 1,500 350 1,850 9,583 1,500 350 1,8501970 8,083 1,500 294 1,794 8,083 1,500 294 1,7941971 §,583 1,500 240 1,740 6,583 1,500 240 1,7401972 5,083 1,500 183 1,683 5,083 1,500 183 1,683 1973 3,583 1,500 129 1,629 3,583 1,500 129 1,6291974 2,083 l,112 74 1,186 2.n83 1,112 74 1,186 1975 971 389 41 430 971 389 41 4301976 582 389 25 414 582 389 25 414 1977 193 193 8 201 193 193 8 201 TABLE 2 HAITI: ESTIMiATED CONTRACTUAL SIMV1CE PAYlYENTS ON THE EXTERNAL PUBLIC DEBTA National and Government Guaranteed Debt (rcontinued) /1 The schedules shovm in this table were prepared from data vhich were largely inconsistent or incomplete and the repayments may not, therefore, be factual. /2 The amount outstanding shown in 1956 is as of February 29, 1956. Payments, howvever, are shown for the full year. /3 Excludes 41099,000 outstanding GSA loan included in Table 1. l1though Haiti reports that the loan may be set- tled over a five year period, such other details as interest rate and date payments begin are not readily availabIe. No repayment schedule could be made. Source: IBID -Economic Staff TABLE 3 VALUE OF -XPORIS, 1950 -1955 (millions of U.S. dollars) Fiscal Year Commodity Oct.-June 1950 1951 1952 1953 1954 1955 1954 1955 Coffee 20.5 26.0 32.7 25.1 43.5 23.0 37.6 21.8 Sisal 9.3 12.1 10.3 4.7 4 9 5.4 3.7 4. 2 *7- 38-,1 43.0 2-9.7 243 25.7 Sugar 2.9 4.0 3.3 2.3 1.2 1.2 0.8 0.7 Cotton 0.8 o.6 0.6 0.8 o.6 0.9 o.6 0.7 Cacao 0.8 1.3 1.1 1.1 1.9 1.2 1.8 1.0 Bananas 1.3 1.0 0.5 0.3 0.2 1/ 0.2 0.02 Essential oils 0.6 1.0 1.1 o.6 0.8 1.1 0.5 0.8 Handicrafts 0.9 1.0 1.2 1.4 1.0 1.0 0.9 0.8 Others 1.3 2.6 2.1 1.5 1.4 1.1 0.7 0.8 Total Exports 38.5 49.6 52.9 37.8 55.5 34.9 46.8 30.6 Source: Fiscal Department, BNRH 1/ Less than $50,000 TABLE 4 VOLUME OF EXFORTS, 1950 -1955 Fiscal Year Oct.-June Commodity Unit 1950 1951 1952 1953 1954 1954 1955 Coffee Thousand m.tons 26.2 25.4 31.3 23.1 31.8 28.1 18.5 Sisal " 33.4 31.2 25.9 20.0 24.0 17.4 23.0 Raw Sugar ' 30.8 34.4 32.4 28.5 15.4 9.8 9.3 Cotton " 1.3 0.5 1.1 1.3 0.8 0.7 1.0 Cacao it 1.8 2.0 1.9 2.1 2.2 2.1 1.2 Bananas Million stems 1.8 1.3 0.6 0.4 0.4 0.2 0.04 Source: Fiscal Department BNRH TABLE 5 UNIT VALUE OF MAJOR EXPORTS, 1950 -1955 (U.S. dollars per kilogram) Fiscal Year Commodity Oct.-June 1950 1951 1952 1953 1954 1954 1955 Coffee 0.78 1.02 1.04 1.09 1.37 1.34 1.18 Sisal 0.28 0.26 0.25 0.24 0.21 0.21 0.17 Sugar 0.09 0.12 0.10 0.08 0.08 0.08 0.08 Cacao 0.45 o.65 0.58 0.52 0.91 0.86 0.83 TABL1E 6 IOURISM, 1950 -1955 Numbers of Visitors Gross Tourist Income Fiscal Year Tourists Seamen (thousands) (millions of U.S. dollars) 1950 12.1 1.6 1951 16.9 2.2 1952 21.1 2.7 1953 34s.4 52.0- 4.1 1954 48.1 79.5 6.2 1955 54.9 88.8 _ 5.9 Source: Institut Haitien de Statistiques 1/ October-June only. TABLE 7 VIALUE OF 1M PORIS, 1950 -1955 (millions of U S. dollars) Commodity Fiscal Year 1950 1951 1952 1953 1954 1955 '2fheat flour 3.2 4.0 5.3 4-7 5.1 5.2 Other foods 3.6 4.4 6.1 5.9 5.8 5.4 Cotton cloth 7.8 7.3 7.9 5.4 7.4 4.9 Other textiles 3.4 4.0 5.0 4.0 1.9 2,6 Shoes 0.5 0.7 1.2 1.3 0.7 o.6 Soap 1.3 1.7 1.6 1.8 1.8 0.8 Chemicals and Pharmaceuticals 1.0 1.3 1.2 1.0 2.5 1.0 Oil Products 1.4 1.9 2.3 2.3 2.0 1.7 Iron and Steel 1.9 3.0 2.9 2.6 4.1 3.2 Agricultural machinery 1.0 1.4 1.7 1.2 3.0 2.4 Vehicles 1.3 2.1 2.3 2.4 2.5 2.4 Cement 0.6 0e6 0.7 0.8 0.6 0.2 All other 9.2 12.1 17.6 11.7 9.8 8.8 Tbtal Imports 36.2 44.5 50.7 45.1 47.2 39.2 Source: Fiscal Department, BNRH TABLE 8 GEOGRAPHIC''L DISTRIBU TION OF :v.ERCHAND3F 'li.DE 1950 -1955 Fiscal Year Country Oct.-June 1950 1951 1952 1953 1954 1954 1955 E X P O R T S (percentages) U.S.A. and Canada 57 59 59 41 46 45h/ 481/ Belgium 16 18 23 19 22 22 15 France -- 2 -- 12 11 11 16 Italy 12 6 8 10 8 9 10 Netherlands 9 6 5 7 5 5 3 United Kingdom 3 5 1 1 2 2 2 Other countries 3 4 4 10 6 6 6 100 100 100 100 100 100 100 I M P O R T S (percentages) U.S.A. 76 72 69 68 63 64 65 Continental Europe 7 10 10 12 17 14 13 Canada 5 5 6 5 8 8 6 United Xingdom 4 5 4 4 4 4 4 Curacao 3 3 3 4 3 3 3 Other countries 5 5 8 7 5 7 9 100 100 100 100 100 100 100 BALANCE OF MERCHANDISE TRADE 3/ (millions of dollars) United States -5.6 -3.1 -405 -15.1 -5.0 -8.4 All other countries /8.4 /8.2 /6.7 /7.8 / 13.3 44.1 /2.8 /5.1 2.2 -7.3 /8.3 -4.3 1/ United States only. 2/ Fiscal 1955 3/ Totals for 1950 differ slightly from those sh-vwn in commodity classification of trade. Source: Fiscal Department BNRH TABLE 9 BALbNCE OF P?AYIENTS, 1950 -1955 (millions of U.S. dollars) Fiscal year Item 1950 1951 1952 1953 1954 1955 A. Goods and Services Exports (f.o.b.) 39.9 50.4 53.2 38.2 56.7 34.9 Imports (c.i.f.) -36.2 -43.9 -50.3 -44.6 -47.6 -39.2 Net invisibles -4.4 -6.7 -5.6 -5.8 -2.1 n.a. -0.7 -0.2 -2.7 -12.2 7.0 B. Private funds Donations -- -- -0.2 0.1 -0.6 n.a. Direct investments 4.7 6.2 4.7 5.7 2.4 n.a. Short-term funds -o.8 -1.1 -2.1 -1.2 -5.5 n.a, 3.9 4.8 2.4 4.6 -3.7 C. Official funds Donations 0.5 1.J 0.8 0.9 0.6 n.a. Long-term funds -1.0 -0.6 -0.5 3.4 1.4 n.a. Short term funds and monetary gold -2.2 -1.7 -.3.1 7.5 -4.4 n.a. -2.7 -1.3 -2.8 11.8 -2.4 D. Net errors and omissions -o.5 -3.3 3.1 -4.2 -0.9 n.a. Total (B 7 C , D) 0.7 0.2 2.7 12.2 -7.0 Increases in National Bankls exchange reserves 2.6 3.7 1.1 -6.1 5.5 -2.5 - 1/ Octciber 1, 1954 -September 20, 1955 Source: 1950-54 data from International Monetary Fund; 1955 data from Tables 3;AT, 12 TABLE 10 GOV.iNKIENT BUDGET, 1950 -1955 (millions of U.S. dollars) Fiscal Year Category 1950 1951 1952 1953 1954 1955 Revenues Import taxes 11.72 13.24 15.14 14.06 16.46 14.18 Export taxes 4.12 5.18 5.98 4.50 7.22 3.97 Other taxes 5.98 6.64 8.14 8.72 8.52 11.38 Total 21.82 25.06 29.26 27.28 32.20 29.53 Expenditures Defense 4.96 4.99 5.62 6.39 7.22 6.56 Debt service 2.07 1.90 1.70 1.26 1.42 2.36 Investment -/ 6.20 6.14 11.52 8.94 10.96 9.80 Other expenditures 8.60 11.33 13.15 13.83 15.41 16.00 Total 21.83 24.36 31.99 30.42 35.01 34.72 Budgetary surplus(/) or deficit(-) -0.01 0.70 -2.73 -3.14 -2.79 -5.19 1/ Investment financed by government revenues, as shown in Table 11. Source: Fiscal department of National Bank and Ministry of Finance TABLE 11 PUBL.IC IV9W2YBE71 Is -I tI E 1950-1955 TThousands of Dcilarrs Fiscal Year Item 1950 1951 1952 1953 1954 1955 AGRICULTURE .................l. 1S153 1,132 1,968 3,376 9,405 11,412 Irrigation rnd Agri- culture 1 .............. 168 82 851 110 1,118 1,126 Irrigation (borrowed - - - - - 500 Artibonite Valley ........ .750 750 750 1,500 2,521 2,520 "1 (borrowed funds) - - - 1, N00 5,500 7,000 SCIPA .............. 235 300 367 266 266 266 WTANSPORTATION ................ 891 1,706 3 862 6 276 39687 3 865 Roads, airports ............ 84 1,115 31,95 1,709 3,034 Roads, airports (borrowved - - - 3,870 1,476 804 Bridges and Land .......... 90 73 45 35 127 27 MvIaterial and EquiDment .... 718 519 434 415 375 - PUBLIC BUILDINGS AND WORKS 3,679 2,934 4,546 2.909 3,229 1,539 Municipal and Port VWorks.. - 1,650 1,931 1,669 1,225 79 Mlunicipal and Port Viorks (borrowed funds) .... o... - 400 743 - - - Housing & other Buildings. 775 796 1,872 942 571 1,460 International Exposition, etc*.& ... . .............. o2,904 .88 - 298 1,433 - MISCELLANEOUS ............ ... 478 769 1,884 1,745 1,616 1,285 International Organi- zations (except SCIPA) 383 407 494 630 716 608 MLiscellaneous (mainly industry) 95 362 640 1,116 600 521 Contribution to Agri- cultural & Industrial Bank ....*............ - 750 - 300 157 Total 6,201 6,540 12,260 14,307 17,936 18,101 of which: out of Govt.revenue 6,201 6,140 11,517 8,936 10,960 9,797 out of borrowed funds - 400 743 5,370 6,976 8,304 1/ Except Artibonite Valley Source: UN Monetary and Fiscal Expert. TABLE 12 SU11MAPRY BALANCE SHEET OF THE NATIONAL BANK (millions of U.S. dollars) Item September 30 February 29 1952 1953 1954 1935 1956 A S S E T S Note Cover Gold 2.7 2.2 2.2 2.2 2.2 Dollars ! 4.1 3.7 5.5 3.5 7.2 Government securities 2.0 2.0 3.0 4.6 4.9 Discounts and advances 1.0 1.8 1.8 1.1 1.2 Total 9.7 9.6 12.4 11.3 15.5 Other Assets Dollars 5.9 1.2 4.3 3.8 4.8 Loans and investments 6.3 11.1 11.8 17.1 13.6 (of which to Government) (0.7) (3.6) (1.0) (8.7) (7.4) IMF/IBRD Subscription - 3.5 3.5 3.5 3.5 Other assets 1.1 3.5 1.4 1.7 1.4 Total Assets 23.1 28.8 33.4 37.4 38.8 L I A B I L I T I E S Capital, surplus and undistributed profits 1.7 1.8 1.8 lv9 2.5 Notes in circulation 9.7 9.6 12.4 11.3 15.5 Deposits 10.6 10.3 13.4 16.9 15.5 IMF/IBRD Subscription - 3.5 3.5 3.5 3.5 Other liabilities 1.1 3.7 2.3 3.8 1.9 Total liabilities 23.1 28.8 33.4 37.4 38.8 1/ Including $500,000 gold subscription to IMF Source: National Bank TABLE 13 DOMESTIC MONEY SUPPLY, 195C -1955 (millions of gourdes) ___________________September 30 Item 1950 1951 1952 1953 1954 1955 Gourde notes and coins 38.8 44.2 55.3 54.5 68.2 63.4 Bank deposits 44.7 60.2 64.4 63.6 71.7 99.7 Total domestic money supply 83.6 104.4 119.8 118.1 139.9 163.1 Source: BNRH