Belize Economic Forecast

Belize is a beautiful tropical destination, one that depends on tourism and transportation to support the small and private-enterprise economy. In addition to these two sectors being heavy earners for foreign currency exchange, the country also depends on exportation of citrus, cane sugar, bananas, marine products, and garments.

Belize is a beautiful tropical destination, one that depends on tourism and transportation to support the small and private-enterprise economy. In addition to these two sectors being heavy earners for foreign currency exchange, the country also depends on exportation of citrus, cane sugar, bananas, marine products, and garments.

Thanks to the government of Belize creating sound financial and monetary policies in 1998, the country has experienced as steadily growing Gross Domestic Product or GDP. In fact, from 1999 to 2007, the GDP grew almost 4%. However, during the world financial crisis, the Gross Domestic Product fell slightly just under 3%. To bring the country back up, the government began to explore other possibilities.

Then in 2006, oil and gas were discovered, which proved to be a significant boost to the economy of Belize. However, a deficit of both imports and exports and foreign public debt not being maintained account for approximately 90% of the Gross Domestic Product, causing serious concern. Because of this, Belize’s government structured the majority of external public debt for commercial as a means of reducing interest but also reducing the amount of stress caused by liquidity.

Belize GDP Forecast

Belize is faced with a number of challenges specific to the economy and GDP to include the country having a sizeable trade deficit, as well as significant debt to foreign countries. Because of this, the country of Belize had been taking positive steps to improve growth of the Gross Domestic Product. While both fiscal measures and monetary measures helped boost the economy of Belize, the country did experience some serious issues in 2008 because of the world financial recession. When looking at the Belize GDP (Gross Domestic Product, Current Prices, US Dollar), we see that at the close of 2009, numbers reached $1.336 billion. Considering the numbers for 2008 were at $1.36 billion, only a slight reduction of 1.68% was experienced, which put the country for world ranking in the number 160 slot. Change expected by the end of 2010 is expected only to be a little more than 3.22%, which would change the dollar amount to $1.38 billion. However, by the end of 2015, experts expect the final GDP forecast numbers will be $1.755 billion.

Belize Unemployment Forecast

This country is small putting the Belize population around 0.33 million. Of the people living in this country, the workforce is around 122,300. This means for skilled labor, Belize has a definite shortage, regardless of the sector whether agriculture, industry, or services. Today, it is estimated that Belize unemployment rate is at 8.1%, which is down from 2006 when numbers were reported at 9.4%.

Belize Inflation Rate Forecast

In looking at the Belize inflation rate, data are only averages for the reported year and not for end-of-period. By 2009, the average change for consumer pricing was at 2.02%, which from 2008 when numbers were reported as 6.39%, a reduction of 68.38%. With this, the country was ranked globally at number 116. Numbers that forecasters are reporting is that for end of year 2010, a 23.76% reduction will be seen, putting the number at 1.54%. Then for the end of 2015, the inflation rate is expected to rise, reaching 2.5%.

Belize Current Account Balance Forecast

The Belize Current Account Balance is comprised of all transactions excluding any capital or financial items. The primary classification for these numbers includes goods/services, income, and current transfers. In 2009, the country was ranked worldwide as number 64 with a balance of a negative $0.093 billion in US dollars. From numbers of negative $0.14 billion in 2008, it meant a reduction of 32.12%. It is being forecasted that for end-of-year 2010, a slight reduction of 8.60% will be experienced, ending with a negative $0.09 billion. Then for 2015, numbers are expected to hit negative $0.146 billion in US dollars.