The Republic of Haiti is one of the poorest countries in the Western hemisphere. Many social difficulties are evident including high infant mortality rate, low life expectancy / young median age, AIDS/HIV infection rate running 5 percent. Estimates have upwards of 80 percent of the population living below the poverty line. In addition, Haiti’s economy is stuck in a quagmire, a terrible state. There is basically no industry and agriculture output is minimal. For many Haitians, daily survival is their goal. Haiti has never fully recovered from international sanctions after Mr. Aristide was removed by a military coup in the early 1990’s before the United States re-instated him back in power in 1993. Further, the infrastructure is in shambles including the legal system and the lack of property rights.
Economic Statistics
Total GDP as measured by purchasing power parity amounted to $14 billion USD (2005) with corresponding GDP/Capita at $1,700 USD. Market GDP stands at $4.3 billion USD (2005). GDP growth is forecasted at 2.5 percent for 2006 and 4 percent for 2007. Other GDP growth rates have year 2005 at 2 percent, 2003-04 fell by 3.75 percent. Inflation is projected at 13.1 percent for 2006, year 2007 at 8.9 percent. Other inflation quotes include year 2005 at 15.2 percent, 2004 at 22.5 percent, year 2003 at 42.5 percent, 2001 at 12.3 percent. The current account is balanced in 2005 due to remittances valued upwards to $1 billion USD per year, however the trade component is in deficit at a large 1.08 billion USD (2005). The fiscal account recorded a shortfall of 1.5 percent of GDP (including grants) for 2005. Unemployment / underemployment stands at 65 percent. International reserves are low at $95 million USD equivalent (2005) representing only 1.6 months of import coverage. No oil and gas production, self-sufficient in electricity production although shortages occur.
CURRENCY: ISO Symbol ‘HTG’, Haitian gourdes, gourde. At time of review on July 14, 2006, the Haitian gourde had an exchange value of 39.05 HTG to the US-dollar (USD) and/or 49.46 HTG to the Euroland euro (EUR). The currency regime follows that of a floating exchange rate within a bimonetary currency system where both the U.S. dollar and the Haitian gourde are accepted as currency.
CURRENCY HISTORY: the original gourde came into circulation in 1813. After several revaluations, the gourde was pegged to the French franc at 1 gourde to 5 francs in 1881. By 1912, the gourde was then re-pegged, this time to the US-dollar at an exchange rate of 5 gourdes to the USD. Historical exchange quotes include year 2005 at 40.45 HTG to the USD, 2004 at 38.3, 2003 at 42.37, year 2002 at 29.25, 2001 at 24.3, 2000 at 22.52, 1999 at 17.96, 1998 at 16.5, 1997 at 17.3, 1996 at 15.09, 1995 at 16.16, 1994 at 12.94, 1993 at 12.8.
CURRENCY FORECAST: currency risk includes political instability, natural disasters such as hurricanes. The gourde is highly depended upon foreign aid and remittances. For a detailed currency opinion and analysis on the state of Haiti’s economy and currency, please click the banner below for a quote for currency consulting services.
UPDATED: July 14, 2006
