From April 1996 to April 1997, only 188 Haitians were interdicted. Haiti's economy is recovering from several years of severe decline, exacerbated by international sanctions. The Haitian economy has achieved a tenuous stability, but growth is still weak. Unemployment and flagging public support for reform remain significant concerns. Nevertheless, considerable donor resources have been mobilized and should begin to disburse in the months ahead.
Business confidence remains weak.
Progress on privatization has picked up considerably in the past six months after initial vacillation. Haiti's fiscal adjustment has been harsh. In part, this is caused by delayed disbursements of external budget support, and the sharp limitation on public spending to one-twelfth of last year's nominal level in the absence of a budget approved by Parliament. This has represented a real reduction in government spending since October 1996, notwithstanding increased revenues. A combination of factors may enable higher growth in the second-half of 1997.