The Worldwide Financial Fund (IMF) has praised Belize for its “sturdy restoration” following the COVID-19 pandemic, noting enhancements in social outcomes and monetary stability.
In a press release following its Article IV Session for Belize, the IMF highlighted that after a 30.6 per cent growth between 2021 and 2023, the nation’s actual gross home product (GDP) grew by 8.1 per cent final yr, fueled by optimistic developments in tourism, commerce, and transport. Inflation additionally moderated, slowing to 1 per cent in Could 2025 from 4 per cent a yr earlier.
The IMF credited the nation’s sturdy nominal development, mixed with expenditure management and a pointy restoration in authorities revenues, for enhancing the first stability to 1.7 per cent of GDP in 2024. Public debt additionally fell sharply to 61.1 per cent of GDP from a peak of 103.3 per cent in 2020, aided by a debt-for-marine safety swap and a negotiated low cost on Petrocaribe debt.
Wanting forward, actual GDP development is predicted to decelerate to 1.5 per cent in 2025, largely as a result of a slowdown in tourism and weak agricultural efficiency, earlier than step by step converging to its potential of about 2 per cent over the medium time period except lodge and flight capability is expanded.
IMF government administrators warned of draw back dangers from Belize’s excessive publicity to exterior shocks and world uncertainty. They burdened the necessity to scale back public debt and speed up reforms to unlock potential development and construct resilience to pure disasters.
“As a small growing nation with capability constraints, tailor-made coverage recommendation and technical help will stay crucial to assist implementation in Belize,” the IMF stated. Officers welcomed Belize’s dedication to constructing buffers in opposition to future shocks, together with lowering public debt to under 50 per cent of GDP. They really useful enhanced income mobilisation and reprioritisation of expenditures, together with by pension reform, to free sources for focused social packages, crime prevention, and infrastructure improvement.
The IMF additionally referred to as for the institution of a medium-term fiscal framework with clear targets to reinforce credibility and assist an efficient Fiscal Duty Regulation. Officers inspired continued accumulation of reserves to strengthen the forex peg, additional fiscal consolidation, structural reforms to reinforce competitiveness, and reductions in central financial institution holdings of presidency securities.
The assertion highlighted the decline in systemic dangers and urged continued vigilance to keep up monetary stability, together with expedited implementation of the Deposit Insurance coverage Act. Enhancing non-public sector entry to financing was additionally recognized as a precedence, with the IMF noting progress in strengthening Belize’s anti-money laundering and countering the financing of terrorism (AML/CFT) framework whereas calling for continued efforts to deal with remaining gaps.
