IMF Reports on Haiti’s Economic Progress Amid Challenges
The International Monetary Fund (IMF) announced yesterday that by the end of December 2022, Haiti successfully met all targets under its current Staff-Monitored Programme (SMP). These targets included increasing international reserves, managing the primary budget balance, enhancing revenue collection, controlling monetary financing, and maintaining social spending.
While the IMF noted some progress in reforms, it acknowledged that advancements have been slower than hoped. This delay is attributed to ongoing security issues, limited capacity, and political instability.
The IMF emphasized, “Ongoing insecurity and political challenges, along with rising international oil prices, are worsening the humanitarian and economic situation in the country.” The organization urged Haitian authorities to utilize their reserves to help reduce these shocks, maintain economic stability, and support the most vulnerable populations.
Highlighting the recent spike in oil prices, the IMF underlined the need to adjust policies as circumstances change. This analysis followed an eight-day virtual mission led by Camilo Tovar, a senior economist with the IMF.
The Haitian government reaffirmed its commitment to the SMP and has requested an extension until June 19, 2027. The IMF stated that this extension is crucial for achieving economic stability and continuing reform efforts. Regular engagement with IMF staff is maintained through a high-level monitoring committee.
SMPs are informal agreements that allow the IMF to track a country’s economic policies and build a history of implementation, which can facilitate future financial assistance. Haiti’s SMP is designed to address the country’s unique challenges, including severe security issues and institutional weaknesses, while focusing on economic priorities like stabilizing the economy and strengthening governance.
Tovar described the current economic scene in Haiti: “The macroeconomic environment is very tough due to ongoing insecurity and various internal and external challenges. The spike in oil prices, exacerbated by conflicts in the Middle East, has significantly increased fuel costs and worsened the national budget.”
He also pointed to the impact of Hurricane Melissa in October 2025, which disrupted local economies and intensified humanitarian needs. This situation is further complicated by a delicate political transition aimed at organizing elections later this year, the first in a decade.
The report indicated that Haiti’s real GDP has contracted for seven years in a row as inflation remains a concern, currently at 22.1% year-on-year after peaking at about 32% at the end of 2025.
Despite these challenges, Tovar noted that international reserve levels are adequate. He remarked, “Although higher oil prices are challenging, strong remittances from abroad are helping to balance the current account.”
Currently, gross international reserves are expected to reach approximately $3.4 billion by the end of the 2026 financial year, enough to cover over seven months of imports. The nominal exchange rate has generally remained stable, contributing to a rise in the real exchange rate.
However, Tovar highlighted that fiscal policy still faces significant constraints due to ongoing security issues and institutional shortcomings. Revenue collection for the 2026 financial year has been weak due to disruptions caused by these security concerns and administrative challenges, including the end of the Transitional Presidential Council’s mandate.
Overall, while Haiti has made some strides economically, the road ahead remains fraught with obstacles that require careful management and continuous support.
