Haiti Industry Sectors

By: EconomyWatch Content   Date: 16 March 2010

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Haiti’s long history of political violence, inadequate infrastructure, widespread deforestation, not so conducive investment environment, frequent natural disasters and lack of skilled workers have restricted investment in the country’s industrial segments. Haiti’s apparel industry has, however, benefited from the US economic engagement under the Haitian Hemispheric Opportunity through Partnership Encouragement (HOPE) Act, passed in December 2006, and HOPE II passed in 2008. The industry’s exports have surged in recent years and contribute nearly a one tenth of Haiti’s GDP.

 

Haiti Industry Sectors: Haiti Industries

 

Haiti’s industrial production growth rate has declined by 2% in 2009 as compared to a 2.5% increase in 2007. Nearly 70% of the country’s population depends on agriculture and is engaged in small scale subsistence farming. Still the country’s major imports consist of rice and other food grains. Agriculture contributes only around a quarter of the country’s GDP, with products like coca, mango and coffee being of the goods exported by Haiti. The growing demand for mango has boosted Haiti’s Mango exports. Although several varieties of mangoes are produced in various parts of the country all year, only a few varieties are exported.

 

Haiti’s apparel industry is one of the significant contributors to growth. Apparel exports accounted for two-third of the country’s total exports in 2008. The growth in Haiti’s apparel industry is largely driven by the country’s low cost labor and its tariff free access to the US. However, the January 2010 earthquake, which measured 7.0 on the Richter Scale, has devastated several manufacturing facilities in Haiti.

 

The mining industry in Haiti is quite nascent, with small quantities of Bauxite and other minerals being extracted annually. Other manufacturing units in Haiti include sugar refining, flour milling, cement and light assembly units. The country’s manufacturing industry employs nearly 9% of the total population while contributing around 20% of the GDP. Lack of investment has been a major constraint to the growth of Haiti’s industrial segment.

 

Haiti’s tourism industry has received a severe setback from the natural disasters that have hit the country in recent years. The poor state of infrastructure and the history of political violence also discourage tourist arrivals in Haiti. The country’s services segment contributed over 50% of the country’s GDP (according to the 2004 estimates).

 


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