Haiti: Economic Outline
For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
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. According to the IMF, GDP growth fell by -0.7% in 2021, with growth expected to average around 1.3% in 2022 and 2023, mainly boosted by higher remittances from expatriates in the U.S.
According to the IMF, gross debt increased to 24.9% of GDP in 2021 and is projected to remain stable in 2022 and 2023, at 25.1% and 25%, respectively. The budget balance closed at -2.2% of GDP in 2021 and is projected to remain stable in the coming years, at -2.1% in 2022 and -2.2% in 2023. As for inflation, the IMF calculated a 16.2% rate in 2021 that is expected to decrease to 15.5% in 2022 and slightly increase to 15.9% in 2023. Haiti is considered the poorest country in the Western Hemisphere, and poor infrastructure, drug trafficking, organised crime, social unrest and large-scale deforestation are the main obstacles to growth. Another objective of the government is to gradually eliminate fuel subsidies to fund the country's reconstruction, improve general infrastructure and support agriculture and rural development. The government - with the help of international donors as MFI and the World Bank - increased its budget by 4% of the GNB to face the current COVID-19 situation and impulse domestic revenues. The challenges imposed by the pandemic and the earthquake that hit the country in August 2021 further aggravated Haiti's fiscal situation due to higher social and health expenditures amid lower tax revenues. As a result, the country counted on the IMF's debt service payment relief and grants, as well as monetary financing and local banks. In 2021, the government continued implementing measures in response to the economic crisis resulting from the COVID-19 pandemic that included increased health spending, a boost on some social programs, transfers to support workers and households. However, the spread of COVID-19 was much lower than expected, so the authorities spent less on COVID-related needs than anticipated. Nonetheless, the level of spending on health, education, and social protection combined was well above pre-COVID-19 projections (0.6% of GDP).
The unemployment rate stands at 14.5% as of 2020 (World Bank). Poverty is widespread in the country as 70% of the population lives with less than USD 2 per day and 50% with less than USD 1 per day. Unemployment and under-employment affect 60% of the population, but the informal sector represents 80% of total employment. More than 96% of the population is exposed to natural disasters such as hurricanes, floods and earthquakes.
| Main Indicators | 2020 | 2021 | 2022 (E) | 2023 (E) | 2024 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 14.51 | 21.02 | 20.54 | 26.58 | 27.62 |
| GDP (Constant Prices, Annual % Change) | -3.3 | -1.8 | -1.7 | 0.3 | 1.2 |
| GDP per Capita (USD) | 1,235 | 1,765 | 1,702 | 2,174 | 2,229 |
| General Government Gross Debt (in % of GDP) | 22.0 | 25.6 | 25.0 | 20.3 | 19.9 |
| Inflation Rate (%) | 22.9 | 15.9 | 27.6 | 44.5 | 13.7 |
| Current Account (billions USD) | 0.16 | 0.10 | -0.48 | -0.21 | -0.14 |
| Current Account (in % of GDP) | 1.1 | 0.5 | -2.3 | -0.8 | -0.5 |
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) | 29.0 | 6.7 | 64.3 |
| Value Added (in % of GDP) | 20.6 | 25.4 | 51.6 |
| Value Added (Annual % Change) | -4.1 | -2.5 | -2.0 |
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: April 2023
