by Kristen Ku

BELIZE CITY, Thurs. Feb. 29, 2024

The International Monetary Fund (IMF) has released a report on Belize’s economic performance, following the conclusion of its 2024 Article IV consultation with the country.

Led by Jaime Guajardo, the IMF team engaged in fruitful discussions with Belizean officials, including Prime Minister, Hon. John Briceño; Hon. Christopher Coye, Minister of State; Mr. Joseph Waight, Financial Secretary; Mr. Kareem Michael, Governor of the Central Bank; and other key government figures, as well as representatives from the Opposition and private sector.

According to the report, Belize’s economy has shown remarkable resilience and growth. Real GDP growth was estimated at 4.5% in 2023, and the economy showed significant improvement in the sectors of tourism, construction, retail, wholesale trade, transport, and business process outsourcing.

This growth has propelled Belize’s economy to a position 16% above pre-pandemic levels; the unemployment rate has reduced significantly, from 14% in 2020 to 3.4% in 2023.

Thanks to GDP growth and strategic debt management, Belize has made significant strides in reducing its public debt from 103% of GDP in 2020 to 66% in 2023.

However, the IMF projects a moderate economic growth rate moving forward, with real GDP expected to grow at 3.5% in 2024 and stabilize later at 2.5%.

The fiscal position remains strong, but challenges persist, particularly with higher external debt payments impacting the overall fiscal deficit.

Key policy recommendations from the IMF include pursuing fiscal consolidation to reduce public debt to 50% of GDP by 2030, enhancing infrastructure and social programs, and implementing structural reforms to boost inclusive growth and resilience to natural disasters.

The IMF also recognized the importance of maintaining financial stability and increasing international reserves to support the currency peg.

Despite the positive outlook, Belize faces risks, including potential increases in global food and fuel prices and vulnerability to climate-related disasters. The IMF advises vigilance and preparedness to address these challenges as Belize continues on its path of economic growth and development.