Belize is a small, developing country with a private enterprise economy based on agriculture, tourism, and services. It has a rich variety of wildlife and ecosystems, including extensive coral reefs, giving it a key place in the globally significant Mesoamerican Biological Corridor.
Belize's primary exports are citrus fruits, sugar, and bananas, with sugar making up about two-thirds of total exports. In 2018, Belize produced 1.7 million tons of sugarcane, along with oranges, bananas, maize, papaya, rice, and soy. The country also exports seafood, apparel, and manufactured products.
Belize's economy previously relied heavily on forestry, with logwood used to make dye, and mahogany prized for its use in furniture and shipbuilding. However, the country's focus has shifted to agriculture, with only a small proportion of land now used for farming.
Belize's agricultural exports have faced challenges due to low prices for sugar and bananas, and the country has a growing trade deficit. Despite these difficulties, international tourism has surged, accounting for approximately 40% of the country's economy, and agriculture and seafood exports increased by 10.7% in 2022.
Characteristics | Values |
---|---|
Population | 397,483 (2022) |
Area | 22,970 sq km (8,867 sq mi) |
Capital | Belmopan |
Largest City | Belize City |
Official Language | English |
Currency | Belize Dollar |
Main Exports | Citrus, Sugar, Bananas |
Primary Economic Sectors | Agriculture, Tourism, Services |
GDP (2022) | US$2.95 billion |
Inflation Rate (2022) | 6.3% |
Unemployment Rate (2022) | N/A |
Main Import Partners | United States, European Union, Mexico, Caribbean Community (CARICOM) |
Main Export Partners | United Kingdom, United States |
What You'll Learn
Agriculture
Belize's economy is largely based on agriculture, tourism, and services. In this context, agriculture employs about one-fifth of the population. Most farms are smaller than 40 hectares, and many of them are milpas (temporary forest clearings). Traditional shifting cultivation is practised in most of these farms due to the nutrient-poor soils of the lowlands. The remaining farms or plantations are devoted to the raising of crops for export, such as sugarcane, citrus fruits, and bananas.
Sugarcane is grown around the towns of Corozal and Orange Walk, and sugar is exported to the United States and the European Union. In the latter part of the 20th century, sugar production increased tenfold, but it decreased in the 21st century due to the destruction of sugarcane fields in a hurricane in 2000. Citrus fruits (oranges and grapefruit) and bananas are grown mainly in the Stann Creek and Cayo areas, south and west of Belize City. Rice is cultivated on large mechanised farms in the Belize River valley, while corn, roots and tubers, red kidney beans, and vegetables are raised throughout the country, mostly on smaller plots.
Belize has about 8,090 square kilometres of arable land, but only a small fraction of this is under cultivation. In 1999, banana production accounted for 16% of total exports from Belize. Citrus fruits are the country's second most important agricultural crop. In 2018, Belize produced 1.7 million tons of sugarcane, 100,000 tons of oranges, 80,000 tons of bananas, and 77,000 tons of maize, in addition to smaller productions of other agricultural products such as papaya, rice, and soy.
In recent years, Belize's agriculture and seafood exports have increased, aided by the removal of trade barriers and regional partnerships, most notably with Mexico. Domestic export receipts increased to US$242 million in 2022 as revenues rose or remained steady for all major commodities except minerals and fuel, which have been on a downward trend for over a decade.
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Seafood
Belize is a seafood lover's paradise, with its offshore coral reefs and islands providing an abundance of fresh seafood options. The country has a diverse range of seafood due to its geographical location and cultural influences. Here is a detailed overview of the seafood that Belize produces:
Lobster
Belize has a long history of fishing for spiny lobster, similar to the Atlantic lobster found in Canada and the US. Lobster is widely available and relatively inexpensive in Belize, although it is typically only available during the lobster season, which runs from mid-June to mid-February. Lobster is often grilled outdoors and served with lemon garlic butter, providing a delicious seafood experience for both locals and tourists.
Shrimp
Shrimp is another popular seafood option in Belize and is widely available, especially in coastal areas. It is commonly prepared grilled or fried and is a staple in various dishes, including the traditional Belizean shrimp with rice. Shrimp fishing is an important economic activity in Belize, contributing significantly to the country's exports.
Conch
Conch is a delicacy in Belize and is known for its elegantly fluted shell. The meat of the conch is used in various dishes, including conch fritters, which are deep-fried balls of flour batter and chopped conch meat, often served with Marie Sharp's hot sauce. Conch is also used in soups and other local recipes. Conch season in Belize is typically open from October 1st to June 30th.
Fish
Belize offers a variety of fish options, including snapper, lionfish, grouper, barracuda, and mahi-mahi. Fish is prepared in multiple ways, such as grilled, fried, or boiled, and is often served with coleslaw, rice, and beans. Fish Sere, a creamy fish chowder made with chunks of white fish and root vegetables, is a popular dish originating from the Garinagu people of Belize. It is commonly served with coconut rice and plantains.
Belize's diverse seafood offerings also include other options such as crab, crab soup, and crab cakes. The country's seafood industry is an essential contributor to its economy, and sustainable fishing practices are encouraged to ensure the long-term vitality of seafood species and the well-being of the ocean.
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Sugar
In 2018, Belize produced 1.7 million tons of sugarcane, making it heavily dependent on this product. Sugar remains the chief crop, accounting for nearly half of exports. In the 2018-2019 sugar crop season, over 140 thousand tons of sugar were produced, exceeding expectations. However, the industry has struggled to secure markets following European Union (EU) reforms that no longer give Belize preferential rates on sugar. As a result, Belize now competes with other countries and is working to identify new markets for its sugar.
Belize's sugar industry has a rich history that is embedded in the country's economic and social development. It has evolved from small-scale production by Yucatan immigrants to becoming a main source of income through export. The industry grew with the arrival of American expatriates in the late 1860s and 1870s and later, with the use of local and imported labour sources, including indentured East Indian labourers.
The role of sugar in Belize's history is evident through the remnants of old sugar mills and factories scattered across the country. These include the Serpon Sugar Mill in southern Belize, which was established in 1863, and the Lamanai sugar mill ruins in northern Belize, which dates back to the 19th century.
Belize's sugar industry continues to face challenges, such as the need to identify new markets and stay competitive in a global market. However, it remains an important part of the country's economy and contributes significantly to its exports.
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Citrus fruits
The citrus industry in Belize has experienced fluctuations over the years, with sharp price and production changes. However, overall export receipts from citrus products have generally increased. In the early 1990s, citrus production was controlled by two main processing companies: the Citrus Company of Belize and Belize Food Products. At that time, there were concerns about the potential impact of competition from Mexico and Brazil due to preferential access granted through trade agreements.
Belize's citrus products include concentrates, not-from-concentrate juices, and various by-products. The country's citrus industry has adopted modern technology and international quality standards to ensure the highest quality of its products. The processing facilities are certified annually to maintain these standards.
The rise in citrus production in Belize can be attributed to several factors, including an increase in cultivation areas, changing consumer preferences towards healthier and more convenient food options, and rising incomes. The implementation of the Caribbean Basin Initiative (CBI) also played a crucial role in boosting the industry by exempting Belizean-produced citrus concentrate from United States tariff duties, allowing local farmers to undercut their competition.
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Bananas
Banana production in Belize has a long history, dating back to the late 19th century when the country was a British colony. Over time, the industry has shifted from large-scale American and British-owned companies to smaller-scale indigenous farming primarily targeting the European market.
The banana industry in Belize began with four banana farms in the south of the country in the late 1800s: the Manatee Fruit Company of Soldier Creek/Manatee River, the British Honduras Fruit Company from Mullins River, the Belize Fruit Company of Mullins River, and the Walize Fruit Company based in Monkey River. The industry was then moved to the Stann Creek Valley by the British Honduras Syndicate in the late 1880s, which constructed a tramway from its headquarters at Melinda to a pier on the north side of Dangriga.
Another significant investor in the banana industry was the United Fruit Company, which acquired and cleared 2,500 acres of land for banana cultivation in 1909. However, by 1916, Panama Disease was detected, and the industry collapsed.
In 1975, the banana industry was reconstituted with the formation of the Banana Control Board, followed by the Banana Growers Association, which now manages the industry. Banana production in Belize has fluctuated over the years, falling from 68,000 metric tons in 1994 to 45,000 in 1995, and then rising to 78,000 in 1999. In 1999, bananas accounted for 16% of total Belizean exports, and exports steadily increased from $37 million in 2003 to $67 million in 2011.
Currently, there are just over 6,175 acres of land dedicated to banana cultivation in the Stann Creek and Toledo Districts. Belizean bananas are exported in 42-pound boxes, and in 2010, the country exported roughly 4.5 million boxes. The exports are primarily targeted towards the European market, particularly the United Kingdom.
The susceptibility of bananas to diseases, such as Panama disease and black sigatoka, and possible changes in Belize's preferential access to the British market are factors that could impact the growth of the banana industry in Belize. Nonetheless, bananas remain an important agricultural crop and a significant contributor to the country's economy.
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Frequently asked questions
The primary exports of Belize are citrus fruits, sugar, and bananas.
Other agricultural products include papaya, rice, soy, maize, and seafood.
The Belizean economy was historically based on forestry, with logwood used for dye being the initial main export. Later, loggers turned to mahogany, which was prized for use in furniture and ships. In the 20th century, the economy shifted to agriculture, with sugar becoming the principal export.
Belize has a small, private enterprise economy based primarily on agriculture, tourism, and services. International tourism accounts for about 40% of the country's economy, with the United States being the largest source of tourists. Agriculture and seafood exports increased by 10.7% in 2022, and the manufacturing industry continued to decline.
Some unique fruits produced in Belize include sapodilla, dragon fruit, star fruit, craboo, and golden plum.