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Haiti - Economy : Haiti's economy is under control 08/01/2013 09:34:47
"[...] When an investor comes into a country, what it wants is to guarantee that the money it will invest will not be lost, for this purpose, it is necessary that the country has an economic stability [...] I can say that despite all the external shocks that the economy has suffered in the last 7 years, we have remained focused on macroeconomic stability. I mean the main indicators that they [the investors], use to see if a country is stable on the macro-economic plan. One of these indicators is the GDP (Gross Domestic Product), basically the growth of the economy. Although GDP was lower than we expected for 2011-2012 [...] it was higher than the population growth [...] official information indicates that we had an economic growth of 2.8% and a population growth of 2.4%, so a positive real growth of 0.4%. 'This is not Peru', but still, the economy grows. We will not be satisfied with this, because a 2.8% rate is not sufficient to maintain our course towards an emerging economy by 2030. We know that for the country manages to be an emerging country, we need double-digit growth [over 10%], so we'll go progressively, we have a projected growth of 6.9% for fiscal 2012 -2013, which we will keep. The other element that interests the investors is inflation. Inflation is down, we had a 10% rate for the months of June-July 2011 and we reduced it to 6.5% in September 2012 and we will stay the course, so that we have an inflation rate that does not exceed 5% in September 2013. Inflation is when you have more currency in circulation than economic activity [...] this is what result that prices tend to increase, so we are taking steps to not feed the money supply by financement related to the Central Bank, we will finance the deficit through Treasury bills, and it is a controlled deficit, a deficit that will be used to finance investment, not consumption or operation. The other very reassuring element this is the behavior of foreign exchange reserves of the country [...] this is what makes a safety cushion for example if we have no currency coming in, we can keep the country's consumption at a level [...] With the foreign reserve that we have, we can import for 6 months without getting a single dollar in the country and without draining our reserves. For example 6 months of imports for Haiti is $1.2 billion, while our foreign exchange reserves are around $2 billion, so we have the capacity, even if there is not a dollar entering the country, to keep normal operation. We can say for now, until September 2013 [end of fiscal year], the economy is under control, inflation is under control, the exchange rate is under control and what is more important, the government spending are under control [...] we will try to keep operating costs to a level that allows the proper functioning of the administration [...] we will [the Government] finance more investment, to maintain our growth rate. We will reduce our operating level, which will allow all administrations to do what they are supposed to do, without wasting [...]" S/ HaitiLibre
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