Belize is an upper middle-income country in Central America with close sociopolitical and economic ties to the Caribbean. In 2022, Belize had a population of 405,000, a gross domestic product (GDP) of $2.5 billion, and a per capita GDP of $6049. As a CARICOM member, Belize enjoys access to members’ markets and benefits from the trade agreements established through this economic union. Belize has an export-oriented economy that benefits from its proximity to the large markets of the United States and Mexico. Belize also has a unique cultural heritage and is the only English-speaking country in Central America.
Tourism is the most important source of foreign exchange in Belize, followed by agricultural exports. Remittance inflows are another major foreign exchange source that provide substantial support for consumption.
The latest poverty statistics indicate that over a third of the population lived in multidimensional poverty (in 2021) and over half could not afford adequate nutrition and basic non-food items (in 2018).Low levels of female labor force participation hamper poverty reduction and contribute to a tight labor market. Women and Mayans are more likely to be self-employed and poor, indicating a structural difference in employment and poverty outcomes.
Belize’s prospects for sustainable growth and inclusion depend significantly on maintaining environmental preservation and building economic resilience. Belize is remarkably diverse ecologically, with extensive natural capital along the coast, including the largest coral reef in the Americas and an extensive mangroves ecosystem. Both ecosystems play a key role in buffering Belize’s low-lying coastline against adverse climate events, helping to prevent loss of life, property damage, and coastal erosion. Belize also benefits from extensive areas covered by pristine tropical forests that are vital to limiting soil erosion, runoffs, and flooding.
Belize experienced a sound economic rebound, fueled by increased tourism arrivals and tourism-related construction, and real GDP per capita surpassed its pre-pandemic level in 2022 after the GDP growth rate reached 15.2 percent in 2021 and estimated 9.6 percent in 2023. Despite an external debt restructuring in 2021 and significant fiscal consolidation, public debt remains high at 72.8 percent of GDP in 2022. The unemployment rate fell to 5 percent, the lowest ever recorded – though labor participation remains low. Policy priorities include continued fiscal restraint, growth-enhancing structural reforms, addressing the impacts of climate change, and protecting the vulnerable. The economy is expected to grow at a rate of 2-3 percent in the medium term.
