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Belize

 Flag of Belize

Last reviewed: 10 August 2009

Country information

ECONOMY

Basic Economic Facts

DP: US $2.82 billion (2008 est.)
GGDP per head: US$3,611 (2003) US$3,620 (2005) US $6,136 (2008)
Annual growth: 3.8% (2008)
Inflation: 3.1% (2004) 3.7% (2005) 6.4% (2008)
Major industries: sugar, citrus concentrates, bananas, marine products, garments, tourism, oil (discovered in 2006).
Major trading partners: USA, EU, Mexico, Central America, CARICOM (Caribbean Community).
Exchange rate: BZ$3.2 to £1 approx.

The small, essentially private enterprise economy is based primarily on agriculture, including agro-based industry (sugar refining and citrus processing), forestry and fishing. Sugar, the chief crop, accounts for nearly half of exports, while the banana industry is the country's largest employer. The production of oranges, which accounts for the largest acreage cultivated, grew strongly in 2007. Tourism, construction and marine products are assuming greater importance and tourism is now the largest foreign currency earner, having overtaken agriculture. Protecting the natural and historical environment will be critical to the sustainability of Belize’s tourism industry.  Figures of overnight visitors have risen steadily over the past five years, whilst cruise ship passenger numbers have declined steadily since 2004.
There has been exploration for oil in Belize for over 50 years but it is only now that technology makes its extraction viable, this received a boost with oil discoveries in 2006. A small oil field containing 10 million barrels of sweet crude oil is currently in production and exploration continues in other areas of the country.

Despite steady GDP growth over the last couple of years the policy environment tightened somewhat in an effort to reduce pressure on the international reserves. This growth has been hindered by the recent economic climate, with real GDP predicted to contract in 2009 before beginning a weak recovery in 2010.  Real GDP contracted by 2.2% in the first quarter of 2009 as a result of both domestic and external factors. Growth was led by services with tourism playing a key role in the expansion of distributive trade, transport & communications as well as the continued growth in hotel and restaurant activity. Activity in fisheries also heightened as a result of developments in shrimp and Tilapia farming.  The Government's fiscal and monetary policies have been tightened over the last few years in an attempt to slow consumption and improve the external current account position, which was becoming critical. In July 2006 the government announced that they would not be able to meet debt payments to external creditors and sought to reschedule the countries external debt of nearly US$1 Billion. The negotiation of a new “Superbond” was successfully completed in February 2007 extending the life of the debt by 22 years to 2029 and with easier payment terms in the earlier years.

Consumer price inflation has risen to around 6.4% after dipping to 2.3% in 2007, adding to inflationary pressures was the introduction of the General Sales Tax in 2006, high fuel prices at the pump and hikes in electricity rates. The export sector is performing reasonably well with the advent of crude oil exports and higher earnings from citrus products, sugar and aquaculture.  However Hurricane Dean, which hit northern Belize in 2007 decimated a large part of the papaya crop and impacted on Sugar production.  Despite the global recession both import and export values in 2008 continue to be strong.  In December 2007 the CARIFORUM countries signed an Economic Partnership Agreement with the EU, this was partly to replace the agreements on Sugars and banana exports which had been banned by the WTO.  The impact of this agreement, which is much broader in scope, has yet to be seen but should be come more evident over time.  The current synchronised global slowdown, particularly in the US, EU and Japan will likely slow economic growth.

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Contacts

Belize, Belmopan, British High Commission

Address:

British High Commission
PO Box 91
Belmopan

Telephone:

+ (501) 822 3146 - Consular direct
+ (501) 610 1045 - Duty officer

Fax:

+ (501) 822 2761

Email: brithicom@btl.net

Office hours:

GMT:
Mon-Thurs: 1400-1800/1900-2200
Fri: 1400-2000

Local Time:
Mon-Thurs: 0800-1200/1300-1600
Fri: 0800-1400

Consular section opened 9 am to noon and 1-3 pm Monday through Thursdays and 10 am to 2 pm on Fridays

Website: http://ukinbelize.fco.gov.uk/en