Haiti

Bar Graph of Haiti Economic Freedom Scores Over a Time Period
Quick Facts
  • Population:
      10.3 million
  • GDP (PPP):
      $13.6 billion 4.3% growth 2.0% 5-year compound annual growth $1,315 per capita
  • Unemployment:
      7.1%
  • Inflation (CPI):
      6.8%
  • FDI Inflow:
      $190.0 million
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Haiti’s economic freedom score is 51.3, making its economy the 151st freest in the 2015 Index. Its overall score is 2.4 points better than last year, reflecting notable improvements in the control of government spending, business freedom, trade freedom, and freedom from corruption. Haiti is ranked 24th out of 29 countries in the South and Central America/Caribbean region, and its overall score is below the regional average.

Haiti has recorded the fourth largest score improvement in the 2015 Index, but its economy is still reeling from the destruction of the 2010 earthquake. Despite some progress, institutional and economic foundations remain fragile, with economic freedom declining by close to 1.0 point over the past five years.

Of particular

concern is the poor regard for rule of law. Corruption is rampant, and the judicial system is ineffective and inefficient. Smuggling remains a huge problem and is exacerbated by poor trade freedom. Entrepreneurs find Haiti one of the world’s most difficult places to do business, as the regulatory environment for both business and labor is outdated and inefficient.

Background

President Michel Martelly took office in 2011 promising a fresh start for Haiti, but his policies have had little effect on the daily economic struggle that most Haitians face. Inflation and corruption remain popular grievances, weakening his political capital. Relations with the Dominican Republic have been strained since Santo Domingo revoked the citizenship of thousands of Dominican-born people of Haitian descent. The United Nations Stabilization Mission in Haiti, established in 2004 to ensure security, extended its mandate until October 2014 but reduced the number of U.N. peacekeeping troops in the country. Haiti is still recovering from a 2010 earthquake, and reconstruction is far from complete. More than 90 percent of the government’s budget comes from an agreement with Petrocaribe, a Venezuela-led oil alliance. Extreme poverty, weak government institutions, and violent crime are still major problems.

Source: www.heritage.org

Category: Bank

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