Haiti’s economic crisis has deepened with the nation recording its seventh consecutive year of negative growth in 2025, according to the Bank of the Republic of Haiti (BRH). The Caribbean nation’s economic turmoil has been exacerbated by deteriorating security conditions and political instability that have crippled productive sectors.
The agricultural sector, already struggling with structural deficits, suffered significant damage from Hurricane Melissa in late October 2025 during the first quarter of fiscal year 2025-2026. Concurrently, the critical textile industry—a major employment provider—experienced a substantial workforce reduction, declining from 26,326 employees in December 2024 to fewer than 25,000 by December 2025.
Export performance reflected this downturn with goods and services exports dropping 4.85% to $114.72 million in the first quarter. Meanwhile, imports surged to $1.24 billion, representing a 4.57% increase from the previous quarter. This contrasting trade dynamic expanded Haiti’s trade deficit by 5.64%, further straining the fragile economy.
International complications have compounded domestic challenges. The Middle East conflict that erupted in February 2026 and subsequent blockade of the Strait of Hormuz—a transit route for 20% of global maritime energy shipments—threatens to trigger worldwide inflationary pressures. For Haiti, which relies heavily on petroleum imports, this development risks increasing import costs, applying additional pressure on exchange rates, and potentially reversing recent disinflation trends that saw inflation drop to 23.5% in January 2026 from previous highs.
The BRH emphasizes that restoring security remains the essential prerequisite for economic recovery. Some positive developments include the implementation of a customs facilitation agreement between tax authorities and private sector partners, along with targeted tax exemptions on imported raw materials and capital goods designed to enhance business competitiveness.
In response to these challenges, Haiti’s central bank has outlined strategic priorities focused on maintaining macroeconomic stability. These measures include continuing its reduction of excess liquidity through BRH bonds and intervening in foreign exchange markets to stabilize currency fluctuations. Additionally, the BRH is revising growth programs to incorporate regional approaches and initiatives like Booster PME III, which specifically supports women-led small and medium enterprises.