The Belize economy.
Belize’s economic recovery is stagnating following a severe drought that has had a harsh impact on agriculture and hydropower generation. The situation has been compounded by a slowdown in tourist arrivals following years of buoyant growth, reflecting weaker global expansion and the grounding of Boeing 737 MAX aircraft, which service the country.
The current account deficit will remain large, with international reserves averaging just three months of imports.
The primary surplus will narrow due to increasing spending on wages and public investment and weaker-than-expected revenue.
This being an election year, cuts to current expenditures will probably be off the table, limiting debt reduction in the short term.
Funding constraints will hit the government’s ability to pursue much-needed reforms in infrastructure and education.
