IMF expects Haiti economic growth of four per cent in 2015

IMF projects 4% Economic Growth for Haiti in 2015 but Financial and Domestic Destabilization could occur


Under a new initiative called the Extended Credit Facility (ECF), signed in 2014, Haiti has benefited from ECF assistance in sustaining economic growth. The International Monetary Fund (IMF) projects a growth rate of 4% in 2015 for the country. But there has been reduced gross domestic product (GDP) at 2.7% in 2014, compared to 4.2% in 2013. Inflation is between 4% - 6%.

The Haitian government has not been able to reduce the high fiscal deficit, partially associated with Hurricane Sandy. Infrastructure improvements to stimulate growth strengthen the medium-term forecast, but is liable to negative risks.

In 2015 GDP growth is projected as 2% - 3% with an increase of 3% - 4% for the medium-term. Inflation will stabilize at 4% - 6%. Gross international reserves equate to imports of four to five months.

The IMF has cautioned the Haitian government of risks, concerning possibilities of rising international oil prices, the discontinuation of financial support from Venezuela, and natural disasters.

The IMF congratulated the Martelly administration for sustaining macroeconomic constancy following the 2010 quake. It called to attention positive growth, moderate inflation, satisfactory international reserves, and a betterment of Haitian debt assessment. However, the sufficient reduction of poverty remains a challenge, with weaknesses of a government without a functioning parliament and long-delayed elections.

In terms of the ECF succeeding there must be forceful leadership and donor support working hand-in-glove with the government to achieve program success.

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