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Haiti - Economy : Haiti stuck in a «vicious circle» according to the IMF
05/05/2022 08:39:54
Nicole Laframboise, Economist and Head of Mission in Haiti of the International Monetary Fund (IMF) believes that in the midst of the global turmoil, Haitians will feel more harshly the rising prices of food and fuel among others...
For Shari Friedman, Managing Director of the Eurasia Group for Climate and Sustainability. "With more than 60% of the population below the poverty line and food inflation rising by 40%, this is going to be extremely difficult for the poor."
Haiti hasn't suffered as much from the economic shock of the pandemic as other countries, as it doesn't have a lot of trade or a large tourism sector, Laframboise said while pointing to the much broader concern of local political instability, which undermines the ability of the Government and the IMF to provide advice on macroeconomic policy "[... ] It's hard for them and it's hard…for us. So what do countries like Haiti do when they can't borrow money to pay for food when it gets more expensive? They often have no choice but to print money, which drives up inflation even more. It's a bit like "a vicious circle" adding "but we are working with the authorities to help them get out of this circle."
Michel Patrick Boivert, the Minister of Economy and Finance is confident that he will soon sign a "Staff Monitoring Program" with the IMF, recalling "We have been in discussion with the IMF since March with a view to signing a reference program (SMP) . We are continuing the discussions. We are on the right track and we believe that in the near future the country will be able to have an agreement with the IMF."
SL/ HaitiLibre
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