Instability will hinder any economic recovery in Haiti

Significance

The political and security crisis that emerged from President Jovenel Moise’s assassination in July, coupled with the impacts of a 7.2-magnitude earthquake the following month, have exacerbated the country’s economic fragility and dramatically increased its need for international financial assistance.

Impacts

• A malfunctioning justice system will see contract enforcement risks increase, hindering investment.
• While elections present the only real hope of long-term stability, moves towards them will see social tensions and insecurity worsen.
• Price increases and loss of purchasing power, compounded by reduced fuel subsidies, will increase short-term risks of labour strikes.
• Gang kidnappings and control over territory, transport links and fuel supplies, will hinder aid and development prospects.
• The worsening of the humanitarian crisis and increasing violence will further spur migration.