US State Department’s 2024 Report

The US Department of State has released its 2024 Investment Climate Report. It is a report that looks at how open a country is for foreign investments and what actions and legislation are being undertaken for improvement.  It noted that while in June 2001, the Government of Belize signed the Organization of American States (OAS) Inter-American Convention on Corruption, which calls for periodic reviews, the report noted that there are few non-governmental institutions that monitor government activities or investigate corruption. The government does not provide protection to NGOs investigating corruption.  The report also highlighted the troubles in the sugar industry, citing the year 2022 when some U.S. investors experienced property destruction and loss in the sugar cane industry in the last year. It further added that in January 2024, there was again disturbance in the sugar industry as U.S. investment was threatened when sugar cane farmers from a one of the three associations blocked roads impeding entrance to the sugar facility.  In the area of labour and policies, the report highlighted that several government and industry stakeholders have identified a shortage of unskilled labor in the agriculture and construction sectors while the health sector faces a shortage of qualified nurses and other medical practitioners.  The report indicates that Belize, the smallest economy in Central America, has shown resilience and growth despite ongoing challenges. This growth was primarily driven by expansions in the tourism, construction, retail and wholesale, transportation, and business process outsourcing sectors. It further noted that the government has made strides in managing public debt, which, although slightly increased to 66.3% of GDP in 2022 from 64.1% in 2021, has significantly decreased from 132% in 2020. The Central Bank of Belize plays a pivotal role, holding over half of the country’s domestic debt, with its reduced holdings contributing to increased investment opportunities and decreased excess liquidity in the financial sector.