Statement by the IMF Mission to Haiti

Statement by the IMF Mission to Haiti (Text)
By Ainhoa Goyeneche - Jun 14, 2012

Following is the text of the mission statement from the International Monetary Fund visit to Haiti:

A mission from the International Monetary Fund (IMF) headed by M. Boileau Loko visited Port-au-Prince from June 4 to 8, 2012 for discussions related to the Fourth Review under the Extended Credit Facility (ECF) arrangement.

[1] The mission met with Prime Minister, Laurent Lamothe, Minister of Economy and Finance, Marie Carmelle Jean-Marie, Minister Delegate responsible for human rights and combating extreme poverty, Marie Carmèle Rose Anne Auguste, Governor of the Bank of the Republic of Haiti Charles Castel, other senior government officials, and representatives of the banking sector and development partners.

The mission would like to thank the authorities for their warm hospitality and the climate of close cooperation and frank discussion that prevailed throughout its stay. At the end of its visit, the mission issued the following statement: “The economy continues to grow, albeit below the levels projected in the ECF-supported program, which remains broadly on track. The slowdown in public investment, associated with the process of political transition over the recent months, was offset by sustained dynamism in the commercial sector and manufacturing industries as well as by a good harvest.

Inflation slowed to 5.4 percent in April in line with easing international food and energy prices.
The fiscal position firmed as a result of strong domestic revenue collection and lower capital expenditures than initially forecast in the budget. Credit to the economy picked up and gross foreign reserves exceeded the equivalent of five months of imports at end-March.

“The government of Haiti and the mission reached agreement ad referendum on the broad outlines of a macroeconomic and structural reform program covering the remainder of 2012 and the new 2013 budget year. The authorities’ program will continue to focus on preserving macroeconomic stability, supporting economic recovery, and further reducing poverty.

“The new government would need to accelerate the pace of reconstruction against the backdrop of political stability and security. With the expected upturn in public investment, real economic growth is expected to range between 4.5 and 5.5 percent in 2012. Raising poverty-reducing expenditures and investment levels will remain key fiscal policy objectives. An appropriate combination of macroeconomic policies should help maintain inflation at around 5 percent, while the external position is set to remain strong.”

“The structural reform program will focus mainly on:
(i) strengthening domestic revenue collection;
(ii) improving public financial management and economic governance;
(iii) strengthening institutional capacity to enhance public investment management;
(iv) reinforcing liquidity management and monetary and foreign exchange operations to bring them more closely in line with market conditions; and
(v) reforming the business environment.

Close coordination between the new government and the donor community is important to ensure the success of the program.

The IMF staff will recommend that management request the completion of the fourth review under the ECF, to be taken up by the Executive Board in July 2012.”

SOURCE: International Monetary Fund


To contact the reporter on this story:
Ainhoa Goyeneche in Washington at agoyenechecu@bloomberg.net

To contact the editor responsible for this story:
Marco Babic at mbabic@bloomberg.net



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Haiti’s Economy to Grow 7.8 Percent, Lead Caribbean in 2012: IMF Report
April 25, 2012 | 1:30 pm |

By the Caribbean Journal staff

Haiti’s Gross Domestic Product is projected to grow by 7.8 percent in 2012, according to the recently-released World Economic Outlook from the International Monetary Fund.

Haiti’s projected growth comes after a reported 5.6 percent growth rate in 2011, according to the Fund.
The rate comes largely from reconstruction efforts following the devastating earthquake in the country in 2012.

That number represents the highest projected growth of any country in the Caribbean.
Suriname, with a projected growth of 4.9 percent, has the second-highest projected number.

The projection is in line with a United Nations report from December which pegged the country’s 2012 growth rate at 8 percent.

The IMF’s Regional Economic Outlook for the Western Hemisphere, released Wednesday, projects growth for the region at 3.75 percent this year, before returning to about 4 percent in 2013.

According to the fund, the Caribbean “finally turned the corner” in 2011 after a long recession, although high debt levels and tourism dependence continue to constrain the region’s economic outlook.

See the full list of Caribbean GDP projections below: