Below-average spring harvests exacerbate poor households' low purchasing power

• Spring harvests are ongoing, but due to prolonged atypical drought, flooding in June, widespread inflation and insecurity, they have been negatively affected, resulting in yields below the five-year average. Normally, these crops account for 60 percent of national agricultural production. In the context of limited job opportunities and high levels of commodity prices, food access for poor households has not improved compared to June. Thus, the majority of the country remains in acute food insecurity Crisis (IPC Phase 3).

• Since mid-April, gourde (HTG) has continued to appreciate against the dollar (12 percent gain in mid-July) but remains significantly depreciated on an annual basis. From July, 17, 2022 to July 17, 2023, the exchange rate of the local currency against the US dollar rose from 113.81 gourdes to 137.04 gourdes for one dollar, a change of more than 20 percent. This depreciation has contribute greatly to the deterioration of the purchasing power of poor households, which are largely dependent on the market, particularly on imported  products for their food consumption. Thus, the decrease in the price of imported and even local food (maize and bean in particular, observed in June, and the availability of fuel, which also decrease in price compared to previous months, have no significant effect on market access foo the poorest, with prices still too high in relation to their income.  

• Although violence decreased slightly in June compared to the previous month, it remains high compared to the same period in the previous year. In addition, there has been a recent increase in abductions, contributing to a fragile situation, particularly in the capital. Insecurity is still concentrated mainly in the Nord-Ouest, Artibonite, and Ouest (Port-au-Prince) departments. The security situation remains tense, especially in the capital's neighborhoods such as Croix-des-Bouquets, Bon Repos, Tabarre/Torcel, with clashes between rival gangs. These disruptions continue to have a direct impact on the normal functioning of the markets in these areas. These factors have a negative impact on the economy, markets, and transport. Gangs continue to impose illegal fees in main roads, hindering trade and disrupting market supply. 

Recommended citation: FEWS NET. Haiti Key Messages July 2023: Below-average spring harvest exacerbate poor households’ low purchasing power. 2023