BELMOPAN, Wed. Feb. 23, 2022– This week, the Statistical Institute of Belize (SIB) held its first press conference of 2022, at which it presented recently compiled data on economic trends within the country over the previous year, including the 2021 inflation rate, which stood at 3.2% when prices in the past year were compared to those in 2020. In addition to the Consumer Price Index (CPI) for last year, External Trade Statistics and the Gross Domestic Product (GDP) for the fourth quarter of 2021 were also shared with the public at the briefing.
According to the SIB, Belize’s GDP grew by 14.8% between October and December of 2021, with an estimated $657.9 million worth of goods and services being produced in the country during that period, compared to production totaling $573.3 million that was recorded foe that same period in 2020—a total increase of $84.6 million. This is the third consecutive quarter in which there’s been an increase in production in the country. The SIB estimates that, in total, the country’s annual GDP growth rate for 2021 was 9.8%. According to statistician Christopher Hulse, the 14.8% increase seen in the fourth quarter is due mainly to increased production in the Primary Sector, which includes agriculture and fisheries products, and in the Tertiary Sector, which includes services such as those in the tourism industry.
The SIB also provided data regarding Belize’s consumer price index, or CPI, which indicates changes in the prices consumers pay for a specific basket of goods and services over time. That CPI is used to calculate the inflation rate—the percentage change in CPI between two specific periods.
Statistician Melvin Perez, who presented the Consumer Price Index for 2021, stated that the 3.2% inflation rate seen last year points to an accelerated rise in the prices of goods and services that occurred throughout the year. That rise in prices peaked in November and was primarily driven by changes in the cost of fuel, food, and butane. In the Transport category, prices increased by 9.6%, mainly due to the increased cost of gas. Also, there was a 4.8% increase in prices in the Food and Alcoholic Beverages category due to an increase in the cost of fresh produce, meats, and cereal products. The third-largest increase in prices was seen in the Housing, Water, Electricity, Gas, and Other Fuel category, with a 1.8% overall uptick due to higher LPG prices.
“These increases were, however, partially balanced by a decrease of 3.6% in prices in the Restaurants and Accommodation Services, as lower prices for hotel accommodation rates were reported for the year of 2021 when compared to the year of 2020,” said Perez.
As for the first month of 2022, the overall cost of goods and services increased by 4.1%, when compared to January 2021. The main categories in which there were steep price increases included Transport, with prices increasing by 16.2%, mostly due to a rise in the cost of fuels and lubricants as well as higher international airfare prices. Gas prices especially saw a major increase this January, with fuel pump prices rising from $9.29 per gallon last January to $12.18 per gallon for premium gas, $9.33 to $11.82 for regular gas, and $8.91 to $10.71 for diesel. Food and Non-Alcoholic Beverage costs increased by 2.5%, with the price of several food items, including pigtail, vegetable oil, limes, Irish potatoes, and most significantly, chicken wings, all rising by more than 10%. The prices of some items, such as red kidney beans, sweet peppers, and cabbage did see a decrease.
Of all the areas in the country that were studied, reported Perez, Orange Walk Town saw the highest level of inflation, with a rate of 5.9% for January, followed by Belize City, with a rate of 4.2%. This was attributed mainly to increased rent and higher costs of food products, household items, and clothing. Punta Gorda Town saw the lowest increase— 2.2%, and Benque Viejo Del Carmen saw the second lowest rate: 2.8%.
In the report on External Trade, it was revealed that Belize imported goods worth $2.1 billion for the year 2021—34.7% more than the previous year—with the highest increase in imports being in the Manufactured Goods and Mineral Fuels & Lubricants category. When it comes to domestic exports, the country traded $438 million worth of goods, an increase of 19.2% or $70.7 million from the amount exported in 2020. The SIB reported an increase in sugar earnings (due to greater sugar export volumes) as well as an increase in exports and prices for animal feed, marine exports like lobster and conch, and molasses. There was also a significant decrease in the export of black-eyed peas as well as citrus. Total imports for January 2022 also increased in comparison to January 2021, with the most substantial increase seen in purchasing of goods for the commercial free zones. Domestic exports for the month saw an increase of 23.8%, totaling $20 million.
During the SIB’s presentation, changes in the National Consumer Price Index over the past five years were also highlighted, revealing a steady increase in prices beginning in November of 2020 and continuing upward until January 2022. While consumer prices have fluctuated over the past few years, they have undergone a significant increase since 2021. But despite Belize’s National Inflation Rate standing at 4.1% in January, other countries saw even higher rates, with Jamaica having one of the highest rates in the region, at 9.7% along with Nicaragua and the United States, with 7.7% and 7.5% respectively. Panama had the lowest inflation rate—2.6%.