The Government of Belize has issued a press release in which it describes last week’s statement by the International Monetary Fund (IMF) on Belize as “favourable.”
It points to the IMF declaration that, “Belize weathered the financial crisis relatively well, when compared with other countries in the Caribbean Community.”
The report indicated that inflation in 2010 was zero, and it rose marginally to 0.9 percent in February 2011.
“Growth in 2011 is being supported by expansion in the manufacturing and agriculture sectors, as well as an improvement in the terms of trade, allowing the stabilization of the foreign reserves cover at about 3 months imports of goods and services,” said the IMF.
GOB notes that the IMF has called on Belize to make further improvement in “fiscal consolidation, debt reduction, safeguarding financial and monetary stability, boosting growth and reducing poverty.”
The IMF statement was released by Gerardo Peraza, IMF Mission Chief for Belize, on conclusion of his team’s 2-week visit to Belize.
The statement also opined that “the government needs to adopt a stronger fiscal stance to reduce its dependence on grant and oil revenues, and rebuild macroeconomic buffers to deal with future shocks.”
As it did in its 2010 report, the IMF team again addressed the lingering problem of non-performing loans, which continue to put a strain on the banking sector, but which are reflective of continued challenges facing the Belizean economy.
Peraza’s statement said, “…Belize continues to face challenges due to a high the level of nonperforming loans (NPLs)—which require close and continuing monitoring by the Central Bank—high public debt, and concerns about the business environment.”
The IMF mission in Belize began on August 15 and concluded Thursday, August 25.
The full country report from the IMF is pending.