Why you think Haiti Economic Projection Growth Decrease in Half by IMF “the International Monetary Fund” during IMF mission visit Haiti in May 29 – June 7, Boileau Loko, and other officials were in Haiti to conduct the sixth review under the Extended Credit Facility (ECF) arrangement.
Here is what I think happen during their visit in Republic Of Haiti. They probably don’t see enough activity that is possibly enough to grow the country the way they were projected. That is the reason why they reduce from 6.5% to 3.4%.
What can we do in that situation?
1. We need to manage our downline any way, shape or form of what is coming and what is going out and reduce waste
2. we need to start create or improve product national or international
3. we need to start use our resource for development.
4. If you can create or improve product lakayexpo can do the marketing and bring investor to invest.
If they met with some authorities in Haiti like: Prime Minister Laurent Lamothe, Minister of the Economy and Finance, Wilson Laleau, the Governor of the Bank of the Republic of Haiti, Charles Castel, and other senior officials, members of the private sector and international community.
Here is what I think happened at the round table meeting. The plan Haitian authorities present are weak and don’t have strong call to action or they probably don’t have enough confident in those guys if they issue this statement below:
At the end of the visit, Mission Chief Boileau Loko issued the following statement:
“Implementation of the ECF-supported program is broadly on track. Despite a relatively strong performance of non-agricultural sectors, preliminary data indicate that a weak recovery of agricultural production will limit the yearly growth rate of gross domestic product (GDP) to about 3.4 percent in FY2013, below the program forecast of 6.5 percent. Inflation, after peaking at 7.7 percent at end-March, mainly because of pressures on domestic food supply and prices after last year’s drought and hurricanes, receded to 7.3 percent at the end April (on a twelve-month basis). The fiscal position is still fragile as revenue collection and disbursement of official budget support remain well below projections. Overall credit growth continues to rise while gross foreign reserves remain comfortable, at 6 months of imports at end-April.
“The government of Haiti and the mission reached broad agreement on the main elements of a program for 2013-14 supported by an extension of the current ECF. The authorities’ program will continue to focus on preserving macroeconomic stability, supporting economic recovery, and reducing poverty. The budget for 2013-14 will continue to support reconstruction and contain the wage bill so as to provide the flexibility needed to respond to shocks.
“In the context of declining external aid, mobilization of additional resources to fund capital expenditure and poverty reduction spending through government revenue collection will be crucial. More efficient management of government expenditures will also be required, including through lower subsidies to the national electricity company (EDH). An appropriate combination of budgetary, monetary, and foreign exchange policies should help maintain inflation at around 5 percent and preserve a strong external position.
“The elements of the structural reform program will focus mainly on:
i) raising domestic revenue collection, primarily through strengthening the tax and customs administrations;
ii) further improving public financial management and economic governance;
iii) strengthening institutional capacity to enhance the execution and efficiency of public investment;
iv) enhancing financial intermediation and the financial sector; and
v) accelerating reforms to improve the business environment. Close coordination between the government and the donor community should be maintained to ensure the success of the program.” \
What do you think happen?