Haiti's Economy Shrinks Amid Inflation and Insecurity

Haiti's economy experienced a contraction of 1.1% in the first fiscal quarter, according to a monetary policy note from the Bank of the Republic of Haiti (BRH). The primary sector saw a decline of 4%, the secondary sector contracted by 2.3%, and the tertiary sector fell by 0.3%.

This economic downturn occurs amidst a backdrop of rising energy prices, increased geopolitical tensions, and persistent inflation. Annual inflation stood at 20.6% as of March 2026. The note also highlighted that nearly 1.45 million people were displaced as of February 24, 2026, and approximately 5.83 million people faced food insecurity between March and June 2026.

Public finances show total revenues of 54.7 billion Gourdes and total expenditures of 113.7 billion Gourdes, resulting in a global deficit of 19.12 billion Gourdes, partially financed by BRH advances. The external sector recorded a trade deficit of $1.03 billion, with exports at $160.83 million and imports at $1.19 billion.

The BRH's outlook suggests Haiti's economic dynamics remain vulnerable to multiple shocks. These include domestic security precarity and the potential repercussions of escalating conflicts in the Middle East. The government's adjustment of fuel prices, though slightly revised downward after the reporting period, could further fuel inflation due to increased transportation costs impacting other goods and services. Additionally, Middle East uncertainties threaten to raise Haiti's oil import bill, intensifying pressure on the foreign exchange market. In response, the BRH intends to implement necessary measures to preserve economic activity.