Haiti - FLASH : Economic growth collapses, all indicators are in the red
"The climate of social tension that has prevailed in Haiti for several months is the main reason for the deterioration of the economy and public finances of the country," said the Minister Décembre underlining that these tensions greatly affect trade and other sectors of activity related to the economy.
"Over the last seven months of fiscal year 2018-2019, global prices have increased at a [monthly] rate of 1.4% in the market. Private transfers and textile exports increased slightly, but all other sectors of the economy declined during this period. State investments fell by 60%. The revenues collected for the Treasury have already recorded a shortfall of more than 35% compared to forecasts for the current financial year. This shortfall does not include the losses of 16 billion Gourdes caused by the subsidy of petroleum products, since the beginning of the year. In view of this gloomy picture, the Minister predicts a growth rate of less than 1% at the end of the current fiscal year far from the forecast of 2.8% made at the beginning of the fiscal year.
Note that the latest World Bank report of June 2019 "Global Economic Prospects", indicates that the growth of the Haitian economy could reach 0.4% in 2019, and be the worst economic year of the country for 10 years, result of an economy taken hostage with a set of socio-political troubles since July 2018.
The Minister Décembre indicated that the strike at the level of the General Directorate of Taxes (DGI) https://www.haitilibre.com/en/news-27920-haiti-economy-strikes-multiply-in-the-public-service.html has contributed to the deterioration of the situation of the Treasury, which has not collected any tax for two weeks already. A situation that is the cause of the delay in the process of payment of arrears for public service employees according to the Minister who recalls that salaries in the public service represent nearly 4 billion gourdes.
The absence of a Government ratified by the Parliament is also a handicap in the eyes of the Minister Décembre who recalls that donors and financial partners who had already mobilized funds for Haiti are still waiting to find interlocutors to negotiate. The Gourde continues to fall because of political instability and uncertainties of economic agents (94 Gourdes - average acquisition rate for $ 1 June 17) https://www.haitilibre.com/en/news-27895-haiti-flash-brh-announces-measures-to-reduce-the-pressure-on-the-dollar.html and inflation continues to grow to reach the 18% and more https://www.haitilibre.com/en/news-27867-haiti-economy-record-inflation-at-177.html
So many problems the State is facing right now, says Ronald Décembre. "The country was on a very promising path after the signing last January of the agreement for a budget support of 229 million dollars with the International Monetary Fund (IMF) https://www.haitilibre.com/en/news-27420-haiti-economy-imf-loan-of-$229m-haiti-is-trying-to-negotiate-a-deadline.html . This agreement, if Haiti had met the conditions of stability necessary for its application, would have stabilized the market and strengthened development projects in progress."
Décembre hoped that stability will return to allow the state to meet its obligations. And appealed to reason and dialogue to all actors, to spare the country from the total explosion. All indicators are red alert. "The partners are on hold and arrangements are under way to get the bar right, but the country will not be able to break this deadlock if we do not recover the necessary stability."
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