Haiti's development continues to be hindered by political instability, increasing violence, and unprecedented levels of insecurity, which exacerbate fragility. Haiti remains the poorest country in Latin America and the Caribbean and among the poorest countries in the world. In 2023, Haiti had a GDP per capita of US$ 1,693 and a GINI index of 0.41 (consumption-based). Haiti's Human Development Index value for 2022 is 0.552 — which put the country in the medium human development category — positioning it at 158 out of 193 countries on the United Nations metrics, published in March 2024.
Amid the lingering crisis, high vulnerability to natural hazards, coupled with violent gangs vying to gain control over business districts, the economy contracted for five consecutive years by 1.7% in 2019, 3.3% in 2020, 1.8% in 2021, 1.7% in 2022, and 1.9 percent in 2023. GDP is estimated to have contracted for a sixth year by 4.2% in 2024 behind the backdrop of gang violence. Improvements in tax revenue collection in 2023 (6.3% of GDP compared to 5.2% of GDP in FY22) reversed in 2024 (5.4% of GDP), as weak economic activity and insecurity offset tighter customs administration and higher oil tax revenue.
As a result of insecurity, capital expenditure slowed significantly, leading to a narrower fiscal deficit of 0.6% of GDP in FY24, compared to a 2.3% fiscal deficit in 2023. Debt relief from Venezuela is expected to reduce the debt ratio from 24.2% of GDP in 2023 to 15.2% of GDP in 2024, allowing a reduction of monetary financing. For the first time in many years, monetary financing remained within the statutory limit of 20% of the previous year’s tax revenues. Supported by reduced monetary financing, inflation has fallen from its peak of 49.3 percent in January 2023 but remains elevated at 29.3% by August 2024 amidst ongoing supply constraints in a context of insecurity.
Growth remains highly uncertain and will depend critically on stabilization of the political context and improvements in security. In the near-term, private investment is expected to remain depressed amidst persistent insecurity and private consumption is forecast to recede owing to weak agricultural wage income and persistent inflation. Modest GDP growth is expected in 2025 and 2026, assuming improvements in political stability and security ahead of expected elections by end-2025 or early 2026. Although growth is stabilizing, poverty is expected to remain elevated, with 36.6% of the population projected to live on less than US$2.15 per day (2017 PPP) in 2026.
Haiti remains one of the most vulnerable countries worldwide to natural hazards, mainly hurricanes, floods, and earthquakes. More than 96 percent of the population is exposed to these types of shocks. On August 14, 2021, an earthquake measuring magnitude 7.2 on the Richter scale, struck the southern region of Haiti, an area where approximately 1.6 million people live.
The direct human toll of the earthquake resulted in 2,246 deaths, 12,763 injured, and 329 missing in the three departments of the Southern Peninsula. In terms of infrastructure, 54,000 houses were destroyed while 83,770 other buildings were damaged, including schools, health facilities, and public buildings.
Despite some signs of progress, Haiti continues to face important security challenges. At least 3,661 people have been killed between January and June 2024, according to the United Nations High Commissioner for Human Rights. As the country’s security crisis continues, 5.4 million Haitians struggle daily to find enough to eat and gang activity has displaced over 700,000 people.
On the human development front, Haiti currently has a total of 34,896 confirmed cases of cholera as of June 20th, 2024. Improvements in human capital have stalled and, in some cases, deteriorated. Infant and maternal mortality remain at high levels, and coverage of prevention measures is stagnating or declining, especially for the poorest households.
According to the 2020 Human Capital Index, a child born today in Haiti will grow up to be only 45 percent as productive as they could be if he or she had enjoyed full access to quality education and healthcare. Over one-fifth of children are at risk of cognitive and physical limitations, and only 78 percent of 15-year-olds will survive to age 60.
Last Updated: Nov 06, 2024
