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Significance
Belize’s economic slowdown is proving prolonged, driven by the sharp drop in tourist arrivals as a result of the COVID-19 pandemic. The government has reduced spending and announced an austerity budget for 2021-22. Tourism looks likely to pick up somewhat this year, but high public debt and unemployment will weigh on economic activity into 2022.
Impacts
Failure to agree a debt restructuring could force Belize to seek an IMF loan.
Protracted debt negotiations will deter investment in the short term.
Ongoing vaccine uptake in the United States will be crucial for Belize’s tourism sector, as it is the main tourism source country.
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2021
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