Belize

Belize is situated on Central America’s Caribbean coast and is bordered by Mexico to the north and Guatemala to the south and west. The capital is Belmopan although the former capital Belize City remains the main commercial centre.

Tourism is the number one foreign exchange earner followed by exports of marine products, citrus, cane sugar, bananas and garments. The government’s expansionary monetary and fiscal policies, initiated in September 1998, led to sturdy GDP growth averaging nearly 4% in 1999-2007, though growth slipped to 2.1% in 2008 and -1.5% in 2009 as a result of the global slow down, natural disasters, and the drop in the price of oil. Oil discoveries in 2006 bolstered economic growth. Exploration efforts continue and production increased a small amount in 2009.

Major concerns continue to be the sizable trade deficit and sizable foreign debt. In February 2007, the government restructured nearly all of its public external commercial debt, which helped reduce interest payments and relieve some of the country’s liquidity concerns. A key short-term objective remains the reduction of poverty with the help of international donors.