26927: Blanchet: HAITI: According to CEPAL, there was growth in 2005 (fwd)

[Bob Corbett <corbetre@webster.edu>]

From: Max Blanchet <MaxBlanchet@worldnet.att.net>


      AlterPresse, Reseau alternatif haitien d'information

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      HAITI: According to CEPAL, there was growth in 2005

      December 15, 2005

      Translated by Max Blanchet

      The economy grew by 1.5% during 2005 while it shrank by 3.8% in 2004
according to a report issued on December 15 by the UN Economic Commission for
Latin America and the Caribbean (CEPAL.)

      In spite of the growth in GDP, for the sixth year in a row it remains
substantially lower than was projected according to CEPAL's report.


      Among the factors that explain this situation, the report mentions the
slow pace of disbursement of foreign assistance and the negative impact of the
increase in the price of petroleum.

      According to CEPAL, investment and consumption have remained modest
during the year that is ending while there has been an increase in exports
(6.9%) attributable to a certain "dynamism" of the export industries.

      According to that document entitled, "Preliminary Assessment of the
Economies of Latin America and the Caribbean," importations experienced a
moderate growth of 2.2%.

      The growth of 1.5% stems essentially from the positive difference
between exportation and importation while investments grew by 0.5%.

      The report also notes the decrease in the inflation rate of 5 percentage
points; it now stands at 15.2%.

      Among the productive sectors that tend to be reactivated are electricity
production (41% growth) and to a lesser extent the construction sector.

      The report stresses that the unstable political situation represents one
of the predominant factors shaping the behavior of the Haitian economy.

      According to the report, Haiti has received to date 567 million dollars
of the 1 billion dollars promised by the international community in July 2004.

      A passing grade was given to the interim government in terms of its
management of the economy. "The goals set with regard to fiscal deficit,
monetary control, inflation and net international reserves seem to have been
achieved with a relative success," notes the report.

      This timid recovery has not been felt by the population and social
sectors have not stopped clamoring during 2005 for a reduction in the price of
petroleum products, basic commodities and school fees.