Belize

Economic Overview of Belize

GDP and Economic Growth

• GDP (2024 estimate): $2 billion USD
• GDP Growth: Belize’s economy is small but diverse, with growth projected at 3.5% for 2024. The recovery from the COVID-19 pandemic has been supported by tourism, agriculture, and construction.
• Unemployment Rate: Approximately 9%, reflecting improvements in labor market conditions after the pandemic.

Key Economic Indicators

• Inflation Rate: Expected to stabilize at 3.1% in 2024, after recent increases due to global energy prices.
• Public Debt: While public debt remains high (around 80% of GDP), the government continues to implement fiscal consolidation measures.

Key Sectors of the Economy

1. Tourism

• Tourism is the backbone of Belize’s economy, contributing over 40% to GDP.
• Key attractions include the Belize Barrier Reef, Mayan ruins, and eco-tourism experiences in its rainforests.
• The sector is recovering strongly, with international arrivals nearing pre-pandemic levels.

2. Agriculture

• Belize’s agricultural sector is a significant contributor to GDP and exports.
• Major exports include sugar, citrus, bananas, and marine products such as shrimp and lobster.
• The government is promoting diversification into non-traditional crops and agro-processing.

3. Fisheries and Aquaculture

• The fishing industry, particularly for lobster and conch, plays a critical role in exports.
• Aquaculture, especially shrimp farming, is a growing sector with opportunities for sustainable practices.

4. Renewable Energy

• Belize is rich in renewable energy resources, including hydro, solar, and biomass.
• Over 50% of the country’s electricity is generated from renewable sources, but there is potential for further expansion.

5. Construction and Infrastructure

• Investments in housing, road networks, and tourism facilities drive growth in this sector.
• Public-private partnerships (PPPs) are being promoted for large infrastructure projects.

6. Offshore Services and Finance

• Belize’s offshore sector includes banking, insurance, and international business company registration.
• While reforms have been introduced to comply with global anti-money laundering standards, the sector remains attractive for international investors.

Trade Environment

Trade Relationships

• Main Export Partners: United States, United Kingdom, European Union, and CARICOM nations.
• Main Import Partners: United States, Mexico, China, and Central American countries.

Free Trade Agreements (FTAs)

• Belize benefits from preferential access to the EU and UK markets under the CARIFORUM-UK Economic Partnership Agreement.
• Membership in CARICOM provides opportunities for regional trade.

Logistics and Infrastructure

• Belize has several seaports, including Belize City Port and Big Creek Port, which are critical for trade.
• Challenges include outdated infrastructure and limited connectivity in rural areas.

Opportunities for UK Exporters to Belize

1. Tourism Development

• Opportunities:
• Partnerships in eco-tourism ventures and luxury accommodations.
• Supply of equipment and expertise for marine and adventure tourism activities.
• Challenges:
• Seasonality and vulnerability to natural disasters such as hurricanes.

2. Agriculture and Agri-Tech

• Opportunities:
• Export of agricultural machinery, fertilizers, and irrigation systems to support diversification and modernization.
• Supply of value-added food products and packaging solutions.
• Challenges:
• High transportation costs and competition from Central American exporters.

3. Renewable Energy and Environmental Solutions

• Opportunities:
• Investment in solar and wind energy projects.
• UK expertise in energy storage and grid modernization is in demand.
• Challenges:
• Regulatory hurdles and high initial capital requirements.

4. Fisheries and Aquaculture

• Opportunities:
• Technologies for sustainable aquaculture and processing facilities.
• Export of seafood products, especially lobster and shrimp, to the UK market.
• Challenges:
• Environmental concerns and overfishing regulations.

5. Healthcare and Pharmaceuticals

• Opportunities:
• Rising demand for medical equipment, pharmaceuticals, and telemedicine solutions.
• Potential for collaboration in public health initiatives and training programs.
• Challenges:
• Limited budget allocation for healthcare and reliance on external funding.

6. Construction and Infrastructure

• Opportunities:
• Expertise in sustainable construction and green building technologies.
• PPP opportunities in housing and transport infrastructure development.
• Challenges:
• Limited local workforce capacity for large-scale projects.

Investment Climate

• Stability: Belize offers a stable political environment and investor-friendly policies.
• Foreign Direct Investment (FDI): Priority sectors include tourism, agriculture, and renewable energy.
• Tax Incentives: Investors benefit from tax holidays and duty exemptions under Belize’s Fiscal Incentives Program.

Challenges

• Small domestic market size.
• Vulnerability to climate change and natural disasters.

Recent Political Developments

Belize remains a politically stable democracy with a focus on sustainable development and regional cooperation.
• Government Priorities:
• The administration under Prime Minister John Briceño has prioritized economic recovery, climate resilience, and investment in public infrastructure.
• Environmental Policies:
• Belize is a global leader in marine conservation and has pledged to protect 30% of its marine territory by 2030.
• The government has also implemented measures to phase out single-use plastics.
• Regional Relations:
• Active engagement in CARICOM and collaboration with Central American neighbors on trade and climate issues.

UK-Belize Trade Relations

CARIFORUM-UK Economic Partnership Agreement

• This agreement ensures preferential access to the UK market for Belizean goods, including agricultural and seafood products.
• UK exporters benefit from reduced tariffs on industrial goods and services.

UK Exports to Belize (2023) Breakdown

• Machinery and mechanical appliances: £8 million
• Food and beverages: £5 million
• Pharmaceuticals and medical products: £3 million

Key Investments

• UK investors are involved in Belize’s tourism, renewable energy, and financial services sectors.

Market Entry Considerations

1. Regulatory Compliance:
• Exporters must adhere to Belize’s import standards, particularly in agriculture and food products.
2. Cultural Sensitivity:
• Belize’s diverse population includes Mestizo, Creole, Garifuna, and Maya communities, necessitating tailored marketing approaches.
3. Logistics Challenges:
• Reliable transport networks are essential due to rural connectivity issues.

Contacts for UK Businesses

British Honorary Consulate in Belize City
• Address: 45 Fort George Street, Belize City, Belize
• Phone: +501 227 2199
• Website: www.gov.uk

Belize Chamber of Commerce and Industry
• Address: 4792 Coney Drive, Belize City, Belize
• Phone: +501 223 5330
• Website: www.belize.org