Belize economy: Upbeat about future.
November 30, 2009 by Muhammad Haidar
Filed under Banking, Business, Countries, Current Events, Economics, Finance, Investing, Liquidity, Loans, Muhammad Haidar
The United States may be busy nationalizing its banking and financial services industry, but neighboring and tiny Belize is happy to be private.
Tourism is the major industry of Belize and it has been hit by a drop in arrivals from the United States, that sends the maximum number of them to Belize. However, there does not appear to be a perceptible drop in its earnings from the export of marine products, bananas, garments, etc.
The foriegn debt of the country is, however, a different ball game. Now said to be in the region of 73% of its GDP, it continues to stress the economy with servicing the debt taking away the cream of its earnings. This is, perhaps, the biggest challenge facing the Belize establishment, that is otherwise upbeat about its future.
The services sector of Belize contributes the major share to the GDP at around 63%, followed by agriculture at 30%, and industry at 17%. The services sector also provides employment to nearly 62% of the workforce, while agriculture provides jobs to 20%, and industry about 18%.
The country’s agricultural produce includes bananas, sugar, citrus, etc. The industries sector includes tourism, garments, oil, food-processing, contruction, etc. Belize exports sugar, bananas, fish, wood, etc., and imports manufactured goods, chemicals, fuels, pharmaceuticals, machinery and equipment, etc. The major trading partners are the United States, the United Kingdom, Mexico, Cuba, etc.
The major challenge facing the country is the huge foreign debt which can be wiped off only with increased foreign exchange earnings. But tourism, which is the largest foreign exchange earner for the country is suffering on account of the recession in the originating countries, especially the U.S. Othe major issues include unemployment and poverty.
Belize is considering various ways to deal with these issues, including taking foreign assistance, and with the gradual improvement in the global economic environment, there is scope for Belize to capitalize on it to improve its economic condition.