Haiti: Economic Outline
Haiti is among the poorest countries in the world. Its economy, essentially based on agriculture, is very vulnerable to climatic hazards. Two-fifths of Haitians depend on the agricultural sector, mainly small-scale subsistence farming. The country is also highly dependent on international aid and remittances from the diaspora. Growth has been further hampered by a persistent political crisis and escalating gang violence, further eroding the already low human capital and institutional capacity, and Haiti has become highly unsafe. GDP continued to fall in 2023 (-1.9%), due to heightened insecurity that affects all sectors. The agricultural sector, which employs over 40% of the labor force, registered the largest decline (-5.6%). On the demand side, both public and private investments have collapsed due to the high level of insecurity and uncertainty, and government spending remains muted. According to the World Bank, Haiti is expected to experience another year of negative growth in FY24 (-1.8%) due to heightened insecurity. Public and private investments are expected to continue to fall significantly in this insecure environment from already low levels. Private consumption should remain stable, supported by decelerating inflation and strong remittances. With negative real growth, per capita GDP is projected to further decline in FY24 (-3%).
In terms of public finances, tax revenue collection improved in FY23, thanks to tighter customs control and increased oil tax revenue. However, the tax-to-GDP ratio remains low at 6.3%. Efforts to reduce energy subsidies and limit capital spending have improved the fiscal position, lowering financing needs. The fiscal deficit narrowed to 2.3% of GDP in FY23 from 3.2% in FY22. Consequently, central bank (BRH) monetary financing of the deficit declined but continued to exceed statutory limits. The anticipated decline in energy subsidies, creating additional fiscal space, should help narrow the fiscal deficit to 1.4% of GDP in FY24. Fiscal consolidation efforts are expected to continue over the medium term, and with revenue increases, the fiscal deficit should fall to near 1.0% of GDP (World Bank). Inflation decelerated during the second half of FY23 but remained high at 44.2% in FY23 due to continued monetization of the deficit, low agricultural productivity, and gang-related disruptions that hinder the transport of goods, affecting poor and vulnerable households the most. Despite a decrease in global price pressures, persistent high fuel and food prices, along with low agricultural productivity, should keep inflation high at 27% in FY24 and 20% in FY25 (World Bank).
The unemployment rate stands at 14.9% as of 2023 (World Bank). Enhancing agricultural productivity is therefore a critical policy focus to foster inclusive growth and improve equity. The textile sector, the largest formal private-sector employer, lost about 26,000 jobs (nearly half of the total) in FY23, as two large textile/apparel operations closed and others had operations disrupted. In the current context where economic opportunities are scarce and social safety nets limited, job losses have driven many of these workers and their families into poverty. The poverty rate in FY23 was estimated at 63% (USD 3.65 per day).
| Main Indicators | 2022 | 2023 (E) | 2024 (E) | 2025 (E) | 2026 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 19.83 | 21.53 | 24.05 | 24.36 | 24.21 |
| GDP (Constant Prices, Annual % Change) | -1.7 | -1.9 | -3.0 | 1.5 | 1.5 |
| GDP per Capita (USD) | 1,643 | 1,761 | 1,941 | 1,940 | 1,903 |
| General Government Gross Debt (in % of GDP) | 28.9 | 25.9 | 14.9 | 14.4 | 14.2 |
| Inflation Rate (%) | 27.6 | 44.1 | 23.0 | 14.3 | 12.5 |
| Current Account (billions USD) | -0.46 | -0.68 | -0.19 | -0.30 | -0.23 |
| Current Account (in % of GDP) | -2.3 | -3.2 | -0.8 | -1.2 | -1.0 |
Source: IMF – World Economic Outlook Database - October 2021.
Note: (e) Estimated Data
| Monetary Indicators | 2015 | 2016 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|
| Haitian Gourde (HTG) - Average Annual Exchange Rate For 1 MUR | 1.45 | 1.78 | 2.00 | 2.37 | 2.54 |
Source: World Bank - Latest available data.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 45.6 | 12.4 | 42.0 |
| Value Added (in % of GDP) | 20.3 | 29.3 | 48.2 |
| Value Added (Annual % Change) | -4.5 | -0.4 | -1.6 |
Source: World Bank - Latest available data.
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Labour Force | 5,044,201 | 5,152,876 | 4,972,457 |
Source: International Labour Organization, ILOSTAT database
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Total activity rate | 68.42% | 68.68% | 68.93% |
| Men activity rate | 72.30% | 72.50% | 72.86% |
| Women activity rate | 64.70% | 65.01% | 65.16% |
Source: International Labour Organization, ILOSTAT database
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Latest Update: May 2024
