BELIZE CITY, Mon. Oct. 29, 2018– At his first press conference this morning since his return from undergoing back surgery in Havana, Cuba, last month, Prime Minister, Rt. Hon. Dean Barrow, flanked by several Cabinet ministers at the head table, declared that the Belizean economy is healthy and that GDP grew by 3.4 percent for the first half of this year, according to the Central Bank of Belize.
Barrow, quoting from a Central Bank memorandum, dated Friday, October 26, said that the 3.4 percent GDP growth is the highest economic growth of the country since 2015.
The Statistical Institute of Belize recorded an unemployment rate of 9.4 percent, the Prime Minister reported.
“Our current account deficit also narrowed from 49.3 million in the first half of 2017, to 26.1 million in the first half of 2018”, Barrow said. “And the net foreign assets of the Central Bank of Belize currently stand at 584.3 million or 3.6 months of import cover. This is comfortably above the internationally mandated benchmark of 3 months. Our financial system is healthy, the balance sheets of the domestic banks are robust and their aggregate ratio of non-performing loans remains well below the guideline threshold of 5.0%,” he went on to say.
Barrow said the International Monetary Fund (IMF) in its Article 4 consultation said, “Belize’s economic recovery is strengthening, the Government is making significant progress towards debt reduction and the Central Bank of Belize has taken resolute action to improve financial soundness”.
“The Fund (IMF) also commended GOB for increasing the primary balance to a 1.3% of GDP surplus; and acknowledged that the current budget raises the primary surplus still further to above 2%.,” the Prime Minister said.
Barrow said that the biggest driver of the dramatically improved economic performance is tourism, with overnight arrivals up every month, when compared to the same period in 2017
“And by end December the year on year increase will be just shy of 11%. This continues the record-setting phenomenon of an unbroken 10-year stretch of year over year Belize tourism growth, with that growth being double digit for each of the last three years,” Barrow said.
Barrow explained that the trend in tourism is only expected to get better and it is the same story with cruise tourism. “As of September, cruise passenger arrivals are 19.9% over the same period for 2017,” he noted.
Agriculture, the other Belizean economic mainstay, is a mixed bag, the Prime Minister stated. “But banana is doing well and will do even better with Port improvement for alongside berthing, and the rehabilitation and putting back into production of some of the old John Zabaneh farms” he said. “Citrus is still in recovery mode, but is on the cusp of receiving a huge new capital injection from an international direct foreign investment proposal. And sugar awaits the CARICOM decision to impose the CET on extra regional imports of refined white, making way for its substitution by the plantation white produced by Belize, Guyana, Jamaica and Barbados. This would mean increased regional market share, for us and a substantial hike in earnings for our farmers. Also, ASR is seeking IDB Invest loan funds to assist independent growers with rehabilitation and expansion, and GOB has already provided its required non-objection letter,” Barrow went on to say.
Commenting on infrastructural development, the Prime Minister said, “The Airport Link Road construction, including the bridge to facilitate the traffic bypass from PGIA to 8 miles on the George Price Highway, is well underway. The huge Coastal Road project is now concluding its feasibility study and moves to design stage before going out to construction. And for Caracol, that other mega-million piece of infrastructure, the design is done; the supervision consultants just about chosen; and the selection of the construction contractor and start of the physical works will happen no later than the end of this year.”
Barrow also disclosed that contract for the ongoing rebuilding of the Hummingbird Highway and the replacement bridges and the widening of the road has been awarded. This project is expected to be completed by third quarter of next year.
“Finally, the replacement of the Haulover Bridge is a companion piece to the Philip Goldson Highway 5th Road Project which project is in train to completely repave from the Airport Road intersection to the Buttonwood Bay Roundabout. The design of thenew Bridge is finished, and an Italian specialist firm has been recruited to help chooseand supervise the contractor. Pre-qualification applications have already been receivedfrom local contractors, and the final tender award will be completed this very quarterwith actual construction to start by year end,” the Prime Minister reported.
Prime Minister Barrow then remarked, “Ladies and gentlemen, I believe the takeaway from all I have just said is that good things are happening with growth and development in Belize. Our economy is improved and the soundest it has been in quite a few years. We of course, wish to extend this bull run. And there are all sorts of ways in which we will do this, maintaining expansion and inclusion, implementing new initiatives for growth, but always preserving and strengthening the social safety net. In other words, we will remain focused onameliorating the struggles of that segment of our population that is marginalized. And inthat context, I wish to make two announcements.”
“First is the fact that the Southside Poverty Alleviation Project Phase 3 has been green-lighted, and monies are in hand for immediate commencement. There is $400,000 for home construction for each of the qualifying Southside constituencies. And there is an additional $300,000 for each for education and social assistance. I repeat that the program is ready now, constituencies are already submitting their lists of beneficiaries and physical work starts imminently.
“Then, I wish to announce that from its local funds GOB will finance and implement a 10-million-dollar micro-credit program. This is aimed at startup artisans, tradespersons, entrepreneurs, at the very small farmers; and at the micro players in the tourism industry. We are modeling the program off successful initiatives of like nature in the Commonwealth and Latin America, especially Columbia. And we plan to begin disbursing monies no later than Jan 1, 2019,” Barrow said.