Belize’s Macroeconomy Improves; Microeconomy Still Rebounding
The IMF report projects moderate inflation for Belize in 2023. The report notes that inflation is expected to remain within the central bank’s target range of 1-3%, despite some uncertainties in the global economy. This projection is attributed to a combination of factors, including the strengthening of the US dollar, lower international oil prices, and the expected stability of food prices. The IMF notes that the government’s macroeconomic policies, which include efforts to address fiscal imbalances and promote economic competitiveness, have also contributed to the favorable inflation outlook. However, CEO in the Ministry of Economic Development, Dr. Osmond Martinez, says that the country’s micro economy is still weathering the negative impacts of external factors that cause the cost of living to increase.
Dr.Osmond Martinez, CEO, Ministry of Finance, Economic Development and Investment: “When you look at the economy, and it’s not only in Belize it’s a global issue that we are having, I always believe that the Briceno administration had to dance with the worst dancers meaning that for example the Briceno administration took over the government in the middle of the pandemic where some tough decisions had to be taken in order to be where we are today. The second point is that we had a disruption on the global supply chain you know so a lot of the things we want to do a little bit faster has been so difficult because of the disruption on the global supply chain. The third on is the invasion of Russia to Ukraine which that actually immediately spiked the increase on fuel costs. So when you look at all these activities yes so our macroeconomy you know when we look at economy you have the macro and the micro. In terms of macro economy we’re doing well, we are doing excellent there are unprecedented numbers. In terms of the micro economy we have that pressure external economic pressure especially in items that we import and unfortunately Belize’s economic model is one that we import everything that we consume we practically import and we are importing inflation as well when it comes in and so that has become a problem. But I can assure you that the Government of Belize is looking at ways how to alleviate the issues of cost of living in Belize.”
The statement concludes by emphasizing the importance of maintaining macroeconomic stability and the central bank’s credibility in ensuring continued low inflation in Belize.