Belize Recognized for Economic Growth Despite High Debt in Caribbean Report

Belize’s economic rebounding was featured earlier this month in a video publication by Caribbean Focus Lifestyle.  The country is often featured on lists by international publications, sometimes highlighting the country’s amazing tourism destinations, and other times for less flattering reasons, such as crime. Earlier this month, Caribbean Focus Lifestyle featured the top 10 most indebted countries in the region, including Belize. The feature, which runs just over seventeen minutes, used as its main source, data from the International Monetary Fund (IMF). Belize started off the list in the number 10 slot, signaling the least indebted of the top ten.  While Belize was shown as having a debt-to-GDP ratio of 66.8 percent, or 2.1 billion US dollars, the country was saluted for its improving economic performance, particularly, through the Blue Bond.  

“Belize has faced a challenging journey with its debt-to-GDP ratio, which has fluctuated significantly over the past decade. At its peak in 2020, Belize’s debt-to-GDP ratio soared to approximately 103%, driven by the twin crisis of the COVID-19 pandemic and Hurricane Etta, which devastated key sectors like tourism and agriculture. However, in recent years, Belize has taken measures to address its debt burden. namely through the restructuring of its super bond. In November 2021, the Government of Belize repurchased US $553 million, a quarter of the country’s total public debt, from bondholders at a 45% discount through a blue loan arranged by the Nature Conservancy, drastically reducing its debt by about 12%. Since then, the country’s debt has continued to drop and is expected to do so by 2025.”

The other countries on the list were Jamaica, Antigua and Barbuda, St. Lucia, Grenada, the Bahamas, and St. Vincent and the Grenadines. Suriname was ranked third with a debt-to-GDP ratio of 90.7 percent, followed by Dominica at 96.5 percent, and Barbados in the number one spot with one hundred and three percent.