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Haiti to move into fifth year of economic recession

Port-au-Prince, Aug 10 (Prensa Latina) Haitian government on Thursday forecast a fifth year of economic recession in a row, reporting a 0.4% negative growth rate, according to the framework letter for the 2023-2024 budget project.

The data contrasts with initial 0.3% growth forecasts for 2024.

According to the document, inflation, disruptions in oil product supply and distribution and depreciation of national currency -combined with a persistent insecurity scenario- remain as major challenges for Haiti.

All this has jeopardized the roll-out of programs and projects that should be developed for growth and poverty reduction goals.

President Ariel Henry pointed out his government was able to keep the macroeconomic framework steady through revenue mobilization and control of public expenditure management, despite the fact that they did not receive promised budgetary support.

However, he admitted private investment setback and slow pace of implementing the Public Investment Program, in particular the delay in the implementation of the South Peninsula Integrated Recovery Plan.

The Charter also indicated other factors influencing the poor economic performance such as the socio-political crisis and domestic insecurity, while climatic, natural, health and economic shocks aggravated the food insecurity that has affected most of the population for several years.

Exports, accounting for a 40% of Gross Domestic Product (GDP), dropped by around 21.6% in the Q1 2023, as a result of the closure of mainly textile manufacturing companies.