Haiti Business Overview

Business and Economic Overview

Haiti, located in the western third of Hispaniola, is one of the most urbanized nations in Latin America and the Caribbean. Despite promising investment prospects, it faces significant hurdles for U.S. investors. While abundant arable land and a youthful demographic offer advantages, corruption, inadequate infrastructure, political instability, gang-related violence, inflation, and skilled Haitian emigration create challenges.

The escalation in violence has led to a surge in internal displacement. The United Nations IOM estimated over 362,000 people, mostly children, were displaced across Haiti by organized criminal group-related violence from April 2022 to March 2024. The number of internally displaced persons (IDPs) increased by 15 percent from December 2023 to March 3, 2024, due to the country’s pervasive insecurity.

Haiti faces a challenging macroeconomic outlook despite efforts to achieve economic stability and sustainable growth. The severe humanitarian crisis, exacerbated by repetitive gang-driven port blockades disrupting the supply chain and surging food prices, has left about 5.5 million Haitians in urgent need of aid. Volatile security conditions and the delayed resolution of the political crisis following President Jovenel Moise’s assassination in July 2021 further complicate the situation.

The Haitian economy traditionally relies on agriculture, construction, commercial sectors, and export-oriented apparel assembly. However, a challenging business climate and reduced production have led to job losses and diminished job creation. Gangs in Port-au-Prince and roadblocks along main routes hinder the circulation of goods. Haitians and expatriates wity wealth have been targeted for kidnapping, with some gangs using increasingly sophisticated methods to achieve this.

Following a surge in gang violence starting February 29, Prime Minister Ariel Henry resigned on April 25, paving the way for the installation of the Transitional Presidential Council (TPC). The TPC, comprising seven voting members and two non-voting observers, took power on the same day. The violence disrupted commercial flights at Port-au-Prince’s Toussaint Louverture International Airport from early March to May and affected port operations. A new prime minister, Garry Conille, and a Council of Ministers were sworn in on June 12, and the Kenyan-led Multinational Security Support (MSS) mission arrived before June’s end.

Outlook

The Haitian Government’s Post-COVID Economic Recovery Plan (PREPOC 2020-2023) prioritized the textile sector for economic transformation and diversification. However, supply chain issues, fuel problems, and gang-related problems led to a 45% workforce decline from September 2023 to March 2024, reducing to 32,000 employees. Many companies reduced staffing, while some closed their operations.

The World Investment Report 2023 and the UNCTAD report that Foreign Direct Investment (FDI) to Haiti dropped to $39.3 million from $50 million in 2021. The Haitian Institute of Statistics and Technology (IHSI) reported a 27.3 percent year-to-year inflation rate from April 2023 to April 2024. Political and economic stability, achieved through institutional and structural reforms, are crucial

for improving Haiti’s investment outlook. The Haitian economy experienced negative GDP growth of 1.9 percent in 2023, contracting again in 2024.

References

https://ht.usembassy.gov/business/getting-started-haiti/

https://www.state.gov/reports/2024-investment-climate-statements/haiti/