IDB report: Belize must turn its rebound into lasting growth

By Breaking Belize News Staff (HP): Belize has staged one of the strongest economic recoveries in the region since the pandemic, but the harder task now is turning that rebound into lasting, inclusive, and disaster-resilient growth. That is the central message of a new report from the Inter-American Development Bank (IDB).

According to the IDB’s BIDeconomics report, titled “Landscape of Opportunities: Belize,” the country’s economy expanded at an average annual rate of close to 8 percent between 2021 and 2024. That growth was powered by a rapid rebound in tourism, stronger agricultural exports, and the expansion of outsourced business services. Along the way, poverty and unemployment fell sharply, while public debt eased from the extraordinary levels reached during the pandemic.

However, the report cautions that much of this expansion reflects a cyclical recovery rather than a deeper transformation of the economy. As the rebound effect fades, the IDB expects growth to slow significantly in the years ahead. The key question, the report says, is whether Belize can convert its recovery into sustained and resilient growth.

At the heart of that challenge lies productivity. The IDB notes that Belize’s economy remains heavily dependent on tourism, agriculture, and small-scale services, with most businesses being micro or small enterprises that have limited access to finance, technology, and skilled labour. As a result, innovation remains limited, digital adoption is uneven, and infrastructure bottlenecks continue to push up costs across the economy.

The report is quick to point out that the problem is not a lack of entrepreneurial drive. Belize has a vibrant private sector and a growing services economy. The difficulty, rather, is that many firms struggle to grow, modernize, or move into higher-value activities, held back in part by limited access to credit and a shortage of workers with the technical and digital skills they need.

The IDB stresses that Belize still enters this new phase from a stronger position than many expected just a few years ago, with improved fiscal indicators and a demonstrated ability to innovate in areas like environmental finance and services exports. The challenge now, the report concludes, is to push ahead with reforms that raise productivity, widen economic inclusion, and build resilience before external conditions become less favourable.

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