In Haiti, sociopolitical instability, erratic rainfall, and high prices are driving Crisis (IPC Phase 3) outcomes in many parts of the country. The depreciation of the gourde against the dollar, high international food prices, and a heavy reliance on imported goods is negatively impacting household purchasing power while households attempt to recover from the August earthquake and tropical depression Grace. In some areas such as Camp Perrin, Maniche, and Pestel, food assistance will enable poor households to meet their food needs therefore they will be Stressed! (IPC Phase 2!).
In and around Port-au-Prince, criminal activity and kidnappings for ransom as well as fuel shortages have paralyzed economic activity and disrupted transportation, warehouses, businesses, and schools. Meanwhile, in rural areas, the fall crop year is anticipated to be below average due to erratic rainfall and the residual effects of the twin natural disasters on agricultural production.
In Central America, broad economic recovery and seasonal improvements in food availability and access across the region are improving outcomes to Stressed (IPC Phase 2) for most poor households. However, Crisis (IPC Phase 3) outcomes will prevail in the Guatemalan and Honduran Dry Corridor, eastern Honduras, the Guatemalan Altiplano, and areas impacted by hurricanes Eta and Iota due to smallholder farmer’s primera crop losses, reduced coffee-related income, and an inability to recover livelihoods following multiple shocks in recent years.
During this outlook period, poor rural households are likely to increase the proportion of income that will be allocated to non-food needs due to increased prices for fuel, utilities, and transportation; accumulated debts from the atypically long 2021 lean season; and the recovery of livelihoods in agriculture, tourism, and informal sectors. Rising fuel and transportation costs are likely to reduce earning potential and influence higher food prices, resulting in reduced household purchasing power and an early onset of the 2022 lean season for some households.
Markets are likely to remain well supplied and operating normally due to sufficient domestic production and regional imports. Average cumulative rainfall forecasts and resulting average national level postrera and postrera tardía/apante harvests are expected to influence a seasonal reduction in staple food prices. Nevertheless, below-average rainfall in northeastern Honduras is likely to cause crop losses and a below-average postrera harvest for smallholder farmers.