IMF Lowers Haiti GDP Projection, Citing Storms, Public Capital Spending

By: Caribbean Journal Staff - December 11, 2012

Above: flooding like that during Hurricane Sandy impacted Haiti’s GDP growth this year (UN Photo/Logan Abassi)

By the Caribbean Journal staff

Real GDP growth in Haiti has slowed to 2.5 percent in 2012, down from an earlier projection that the country’s economy would grow by 7.8 percent this year, according to estimates from the International Monetary Fund.

The numbers were revealed in the fund’s statement following the conclusion of its Article IV Consultation earlier this month.

The new projection would put Haiti’s growth closer to that of the Bahamas, and good for the third-highest GDP growth in the Caribbean, not the highest as earlier projected by the fund.

Growth is still projected to accelerate to 6.5 percent in 2013,a number that would lead the region if sustained. The IMF said the projection would hold “assuming a pickup in reconstruction and a rebound in agriculture.”

A projection last month by the United Nations Economic Commission for Latin America and the Caribbean projected Haiti’s growth to finish at 6 percent this year.

The fund said that growth had slowed due to several factors: drought, the impact of Hurricane Isaac and “low execution of public capital spending.”

While the IMF said Haiti’s outlook remained “favourable,” serious downside risks remained.

“A worsening in global economic conditions, heightened domestic political and social tensions — fueled by pervasive poverty and lack of progress in improving living standards — and natural disasters could impede the fragile recovery and constrain Haiti’s growth prospects,” the fund said in its statement.

For now, Haiti’s priorities should be relocating those still living in temporary shelters (something Haiti Prime Minister Laurent Lamothe told Caribbean Journal last week that the government was aiming to complete within 18 months), rebuilding the country while maintaining macroeconomic stability and creating the conditions for “broad-based and inclusive growth.”

Popular Posts cape santa maria

From Anguilla to Aruba, the Best Caribbean Beaches to Visit This Summer

Forget the Hamptons, forget Santorini. And Florida? There’s a reason snowbirds go home in the summer. If you’re looking for a summertime beach getaway, the Caribbean is it. The water is deliciously warm, the trade winds keep you cool and […]

From Belize to Grenada, 10 Little Caribbean Beach Resorts to Visit Right Now 


There are different resorts for different vacations, different tastes, different moods. For some, there’s something delicious about a pint-sized, tiny Caribbean resort, where the emphasis is on the intimate, the serene. Where the soundtrack isn’t a piped-in DJ set, but […]

Southwest Airlines Is Starting New Flights to Turks and Caicos, Cayman and The Bahamas 

beach at palms resort with umbrellas

Orlando has become an increasingly important source market for Caribbean travel in recent years, with carriers like Spirit and JetBlue adding new routes to the region to destinations like Cancun, Punta Cana and Puerto Rico.  Now, another carrier has is […]

Related Posts haiti spirit airlines cap-haitien

Spirit Relaunches Flights to Cap-Haitien, Haiti

Spirit Airlines has relaunched its flights from Fort Lauderdale to Cap-Haitien on the northern coast of Haiti.  The low-cost carrier resumed the service between Fort Lauderdale-Hollywood International Airport and Cap-Haitien International Airport on Dec. 3.  The service is the only […]

Eastern Airlines Is Launching Flights to the Dominican Republic

dominican republic eastern airlines

The revived Eastern Airlines is back in the Caribbean.  The new iteration of the once-legendary carrier is set to launch expanded Caribbean flights in December with service to Santo Domingo, Dominican Republic.  Eastern Airlines will be launching twice-weekly flights from […]

From The Bahamas to Jamaica, The Talking Heads’ Caribbean Love Story

bahamas talking heads jamaica

Talking Heads drummer Chris Frantz’s new book, Remain in Love, is a billet-doux to his bandmate and wife of more than 40 years, bassist Tina Weymouth, as well as documenting the couple’s musical journey together — first, as part of […]


Sign up for Caribbean Journal's free newsletter for a daily dose of beaches, hotels, rum and the best Caribbean travel information on the net.

No. Thank You