Haiti's economy is shrinking for an eighth consecutive year, the International Monetary Fund said on Monday, September 28, as IMF staff and Haitian authorities reached a staff-level agreement on the fourth review of Haiti's Staff-Monitored Program.

The IMF said the economy remains fragile, with persistent insecurity weighing on economic activity and on basic services, and further worsening humanitarian conditions. Higher oil prices are also straining the budget and Haiti's external accounts.

There was some better news on prices. Inflation is projected at about 16 percent year on year in fiscal 2026, well below its peak of more than 32 percent in October 2025, helped by a stable exchange rate.

At the end of June 2026, Haiti met all of the program's quantitative and indicative targets except the continuous target on external arrears. Temporary arrears emerged because of administrative and capacity constraints but were promptly cleared, the IMF said.

The IMF added that the deployment of the Gang Suppression Force has raised the prospects of a gradual improvement in security, which would be key to any economic recovery.