Haiti: Third Review under the Staff-Monitored Program and Request for Extension-Press Release; and Staff Report

This paper highlights Haiti’s Third Review under the Staff-Monitored Program and Request for Extension. The security and humanitarian crises in Haiti continue to deteriorate, compounded by recurrent adverse shocks and an ongoing political transition. The oil price shock stemming from the war in the Middle East has emerged as a major headwind, raising the fuel import bill and implicit fuel subsidy costs, further weakening an already fragile fiscal position. Real gross domestic product (GDP) is expected to contract for an eighth consecutive year in FY2026. Real GDP fell by 2.7 percent in FY2025, and staff now project a deeper contraction in FY2026 reflecting higher international oil prices, the impact of Hurricane Melissa in October, and political uncertainty. Policy discussions focused on maintaining policy implementation and reform momentum during the election year. This request reflects Haiti’s multidimensional crisis, heightened fragility and aims to anchor the SMP objectives of macroeconomic stabilization and reform momentum during the transition. The extension would also provide a bridge to maintain close engagement with the authorities until a new government is elected, thus ensuring the country continues to build a track record of policy implementation.