Economy

     In line with the economic growth sustained for well over a decade, Belize's Gross Domestic Product (GDP) increased by 3% in 1996, with its per capita GDP ranking among the highest in Central America. Belize relies heavily on foreign trade, with major trading partners including the United States, United Kingdom, Western Europe, Canada, Mexico and CARICOM Member States. International transportation is good with ports in Belize City, Dangriga, and Big Creek handling regularly scheduled shipping from the U.S. and U.K. Major exports include sugar, citrus, bananas, marine products, timber and garments. Domestic exports increased 7.2% in 1996, totaling $153.3 million. There was a recurrent surplus of $4.9 million, and the overall deficit decreased to 2.1% of GDP. At the end of 1996, official reserves were US$56.1 million, the highest figure in six years.

     The expansion of agriculture is one of the principal aims of national development planning, with variety of government support services provided, including those offered by the Belize Marketing Board and the Development Finance Corporation. Notwithstanding the shift of focus to agriculture, there is still some economic reliance on the forestry industry. During 1996, timber output increased by 4.3% to 101,900 cubic meters.

     Tax concessions and other incentives encourage the development and diversification of manufacturing industries, including plywood, veneer manufacturing, matches, beer, rum, soft drinks, furniture, boat building, and battery assembly. The clothing and textiles industry remains a major foreign exchange earner. In 1996, the volume of garment exports rose 7.1% to 2.1 million units, with export earnings of $16.8 million. Belize has introduced a "60 Seconds to NAFTA" promotional strategy to take advantage of its proximity to the World's largest trading block. A commercial free zone at Santa Elena is located on the border with Mexico, and within trucking distance of the US southern border. Belize has moved to establish inbond manufacturing facilities in conjunction with Mexico, and a proposed Belize-Mexico Industrialization Program would allow foreign companies to ship components and equipment into Belize for assembly and re-export.

     The development efforts of Belize are guided by the Government's ongoing commitment to expenditure restraint and tax reform as a means of eliminating the fiscal deficit, and increasing domestic savings and investment. Key to this overall objective is the National Development Plan, an integral part of which is an economic cooperation program involving the government and international development agencies through which capital expenditure is financed.

     Several capital projects are underway, including the US$71 million Southern Highway rehabilitation, which involves upgrading 167 kilometers and rehabilitating 167 kilometers of feeder roads. Additionally, The Belize Electricity Ltd. in 1997 signed a Bz$16 million contract for construction of an 85 mile 115 kv power line from the Mexican province of Quintana Roo to Belize City, as part of the proposed nationwide network linked to the Mollejon hydroelectric power station.

     An Economic Citizenship Program is in place, granting passports to applicants who can make an investment/ donation of at least US$50,000, in addition to registration fees. The Government has placed great emphasis on development of human resources to ensure the fullest participation of Belizeans in the economic growth of the country, and the achievement of growth with equity. The labor force in Belize continues to expand, with the number of persons employed rising by 3.9% to total 75,450. Belize has received a $792,000 grant from the Inter-American Development Bank/ IMF to develop a job placement and vocational training system for youth entering the private sector work force.

     As part of the United Nation's Climate Change Convention's Initiative on Joint Implementation, a Rio Bravo Carbon Sequestration Pilot Project has been introduced in Belize. In 1997 Cincinnati Gas & Electric Co. (CG&E) agreed to provide financing for the project through to the year 2004, with other participating utilities including Wisconsin Electric Power Co., Detroit Edison Co., and Pacificorp. Some acres of tropical rain forest will be purchased by the utilities and managed by the Nature Conservancy, coordinators of the project designed to protect the forest and reduce global emission of greenhouse gases.*

* Source: Permanent Mission of Belize to the OAS.

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Updated: 18 March 2008