ARTICLE - HAITI'S ECONOMY

HAITI'S ECONOMY CONTINUES TO RECOVER
(Haiti Libre) -

On March 19, 2012, the Executive Board of the International Monetary Fund (IMF) completed the second and third reviews of Haiti's performance under the Extended Credit Facility (ECF) arrangement. Completion of the reviews will enable an immediate disbursement of about US$15.1 million, bringing total disbursements under the program to date to about US$40.3 million.

Following the Executive Board discussion on Haiti, Mr. Naoyuki Shinohara, Deputy Managing director and Acting Chair, issued the following statement:

"Haiti's economy continues to recover. The sustained efforts of the authorities and the international community have helped rekindle growth, keep inflation at single digit levels, and strengthen the fiscal and external accounts. However, the reconstruction and the pace of implementation of structural reforms has generally been slower than anticipated, reflecting predominantly the protracted electoral process, and the country's limited administrative and absorptive capacity.

Significant challenges remain [...] while favorable, the economic outlook remains subject to risks, including a weaker global economic environment, and a deterioration in the domestic political and security situations. Pursuit of appropriate macroeconomic policies, acceleration of the reconstruction, and a steady implementation of structural reforms, as well as continuous engagement from the international community, will help support the recovery and lay the foundations for long-term sustainable development.

The government's macroeconomic policy mix for 2012 remains appropriate. Higher government revenue and continued non-priority spending restraint will help create additional fiscal space to ramp up spending on poverty-related and other priority projects. Monetary policy remains geared toward containing inflation to single digits. Increased flexibility in the exchange rate will help manage capital inflows, absorb external shocks, and improve monetary policy effectiveness.

The structural reform agenda focuses on strengthening revenue administration; enhancing institutional capacity for better public investment implementation and monitoring; improving public financial management and economic governance; and strengthening the financial sector."