Belize's Gdp: Percentage Overview

The gross domestic product (GDP) in Belize is expected to increase between 2024 and 2029, reaching a new peak of 4.02 billion US dollars, a rise of 0.7 billion US dollars (+21.21 percent). This growth is forecast to be driven by the country's primary economic sectors, including agriculture, tourism, and services. In 2022, Belize's GDP grew by 8.7% compared to the previous year, with the total GDP figure reaching 2,831 million US dollars. The GDP per capita is also projected to increase during this period, with a forecasted rise of 739.3 US dollars (+10.31 percent) by 2029. While the growth rate is expected to slow between 2024 and 2029, the economy of Belize remains highly susceptible to external market changes, particularly fluctuations in world commodity prices and preferential trading agreements.

GDP per capita

Belize's economy is small and primarily based on agriculture, tourism, and services. The country's GDP per capita is forecast to increase by a total of 739.3 US dollars (+10.31%) between 2024 and 2029. In 2029, it is estimated to reach 7,909.49 US dollars.

The GDP per capita is a measure of a country's productivity and refers to the total value of goods and services produced during a given time period, usually a year. In the case of Belize, this value is divided by its total population.

In 2022, Belize had a GDP per capita of USD 6,356, compared to USD 5,825 in 2012. The country's GDP per capita has been steadily increasing over time, reflecting the continuous development of its economy.

Tourism is a significant contributor to Belize's economy, with its natural attractions, such as the Belize Barrier Reef, ancient Mayan ruins, and abundant flora and fauna, attracting visitors from around the world. In 2011, tourist arrivals totalled 888,191, with tourist receipts amounting to $260 million. The travel and tourism industry directly contributed 350.6 million BZD (176 million USD) to Belize's GDP in 2011, equivalent to 12.0% of GDP. When including indirect and induced effects, the total contribution to GDP was 971.9 million BZD (486 million USD) or 33.2% of GDP.

Agriculture, particularly the cultivation and export of citrus fruits, sugar, and bananas, is another important sector in Belize's economy. In 1999, banana production accounted for 16% of total exports. Citrus fruits are now the country's second most important agricultural crop, after sugarcane. In 2018, Belize produced 1.7 million tons of sugarcane and 100,000 tons of oranges.

Belize also has a developing oil industry in the town of Spanish Lookout, presenting new opportunities and challenges for the country's economy.

GDP growth rate

The growth rate of the real gross domestic product (GDP) in Belize is expected to decrease between 2024 and 2029, dropping by 0.8 percentage points. This is a decline from the growth rate in 2021, which was 15.2%. However, the GDP in Belize is still projected to increase by 0.7 billion U.S. dollars (+21.21%) between 2024 and 2029, reaching a new peak in 2029.

The GDP per capita in Belize is also expected to increase during this period, rising by a total of 739.3 U.S. dollars (+10.31%) between 2024 and 2029. This is calculated by converting the GDP from national currency to U.S. dollars and then dividing it by the total population.

Belize's economy is primarily based on agriculture, tourism, and services, with citrus, sugar, and bananas as its main exports. The country's economy is susceptible to external market changes, and it relies heavily on foreign trade with the United States as its top trading partner.

The growth of Belize's GDP is influenced by various factors, including the performance of its primary industries, external market fluctuations, and the impact of preferential trading agreements.

Economic sectors

The economy of Belize is small and primarily private enterprise-based. It is largely dependent on agriculture, tourism, services, and the energy sector.

Agriculture

Belize's economy was dependent on forestry until the 20th century. Logwood, used for making dyes, was the country's main export. However, as the supply exceeded demand, loggers shifted to mahogany trees, which were abundant in the country's forests. Mahogany was used for making cabinets, ships, and railroad carriers. Today, the country's primary exports are citrus fruits, sugar, and bananas. In 2018, Belize produced 1.7 million tons of sugarcane and also cultivated 100,000 tons of oranges, 80,000 tons of bananas, and 77,000 tons of maize. The country has about 8,090 square kilometres of arable land, but only a fraction of it is under cultivation. The government has implemented measures to curb land speculation and encourage sustainable agricultural practices.

Tourism

Belize's thriving tourism and ecotourism industry is supported by its diverse natural attractions, including the Belize Barrier Reef, offshore islands, abundant flora and fauna, and Mayan ruins. In 2011, tourist arrivals totalled 888,191, mostly from the United States, and tourist receipts amounted to $260 million. The travel and tourism industry directly contributed 350.6 million Belize dollars (176 million US dollars) to Belize's GDP, reflecting economic activity in hotels, restaurants, leisure industries, travel agents, airlines, and transportation services. The total contribution to GDP, including wider effects, was 971.9 million Belize dollars (486 million US dollars), or 33.2% of GDP. The industry also directly and indirectly supported 40,000 jobs in 2011.

Finance

Belize is considered a tax haven and has a favourable business environment with efficient incorporation processes and privacy for investors. The country has enacted legislation such as the International Business Companies Act and the Trusts Act to attract foreign investment and facilitate international financial transactions.

Manufacturing

Belize's secondary industry, including food and beverage production, electricity and water supply, and construction, accounts for approximately 14% of its GDP. The country has recently started petroleum production and export, presenting new opportunities and challenges. However, petroleum reserves are limited, and the industry is expected to follow a downward trend in the future.

Exports

Belize's economy is small and primarily based on private enterprise, tourism, agriculture, and services. In 2022, exports accounted for 6.2% of Belize's overall Gross Domestic Product (GDP). This percentage is a decrease from 8.9% in 2021.

Belize's primary exports are citrus fruits, sugar, and bananas. In 2022, Belize shipped US$286.4 million worth of goods around the world, an increase of 17.7% from 2018. The country's top trading partners include the United States of America (24.9% of Belize's global total), the United Kingdom (20.2%), Guatemala (11%), Honduras (6.9%), Spain (6.4%), and Trinidad and Tobago (5%).

• Sugar and sugar confectionery: US$84.8 million (29.6% of total exports)
• Fruits and nuts: $41 million (14.3%)
• Fish: $27.1 million (9.5%)
• Food industry waste and animal fodder: $25.2 million (8.8%)
• Mineral fuels, including oil: $22.4 million (7.8%)
• Tobacco and manufactured substitutes: $16.7 million (5.8%)
• Vegetable/fruit/nut preparations: $16.6 million (5.8%)
• Vegetables: $7.2 million (2.5%)
• Wood: $5.7 million (2%)
• Live animals: $3.9 million (1.4%)

In 2018, Belize's gross exports amounted to $200 million, a decrease of 10.5% from 2017. That year, the main exports were sugar and molasses (30%), bananas (18.5%), citrus (15.7%), marine products (10.7%), and crude petroleum (6.3%).

Foreign investment

Belize has the smallest economy in Central America, with a gross domestic product (GDP) of US $2.57 billion in 2022, a 12.1% expansion over the previous year. The government encourages foreign direct investment (FDI) as a tool for economic growth and to relieve fiscal pressure. In 2022, the government launched a National Investment Policy and Strategy (NIPS) to improve the framework for domestic and foreign investment.

While there are no laws explicitly discriminating against foreign investors, bureaucratic and regulatory requirements, such as the Exchange Control Act, can impede investment and growth. Additionally, investors complain of a lack of transparency, land insecurity, bureaucracy, delays, and corruption as factors that make doing business in Belize difficult.

The government has taken steps to improve the ease of doing business through trade license, stamp duty, exchange control, and land reforms to streamline business applications and related processes. The government also passed a credit reporting act and is working on the establishment of a credit bureau and collateral registry to increase the availability of financing for small and medium-sized enterprises (SMEs).

Belize has Bilateral Investment Treaties with several countries, including Austria, Cuba, El Salvador, Italy, and the United Kingdom. It also has an Economic Cooperation Agreement with Taiwan, which came into effect in January 2022. However, there are no bilateral investment or taxation treaties with the United States, although Belize is a qualifying country under the U.S. Generalized System of Preference (GSP) and the U.S.-Caribbean Basin Trade Partnership Act (CBTPA).

The Belize Trade and Investment Development Service (BELTRAIDE) is the country's investment and export promotion agency, offering various incentive packages to attract FDI. There are no restrictions on foreign ownership and control of companies, but foreign investments must be registered with the Central Bank of Belize and adhere to the Exchange Control Act and related regulations.

Investment Opportunities and Challenges

Belize's small, tourism-dependent economy offers investment opportunities in sectors such as tourism, business process outsourcing, agriculture, telecommunications, and renewable energy. However, challenges include a small population, a high cost of doing business, high public debt, bureaucratic delays, insufficient infrastructure, and corruption.

Belize is open to and actively seeks foreign investment to support its economic growth and diversification. While there are some challenges, the government's efforts to improve the business environment and the availability of investment incentives make Belize an attractive prospect for foreign investors.

Frequently asked questions