GeographyIQ.comGeographyIQ.com
  Home
  Rankings


A B C D E F
G H I J K L
M N O P Q R
S T U V W Y
Z          


Currency Converter

 


World > North America > Belize > Economy (Notes)

Belize - Economy (Notes)


ECONOMY
Forestry was the only economic activity of any consequence in Belize until well into the 20th century when the supply of accessible timber began to dwindle. Cane sugar then became the principal export. Exports have recently been augmented by expanded production of citrus, bananas, seafood, and apparel. The country has about 809,000 hectares of arable land, only a small fraction of which is under cultivation. To curb land speculation, the government enacted legislation in 1973 that requires non-Belizeans to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres of rural land or more than one-half acre of urban land.

Domestic industry is limited, constrained by relatively high-cost labor and energy and a small domestic market. Some 185 U.S. companies have operations in Belize, including Archer Daniels Midland, Texaco, and Esso. Tourism attracts the most foreign direct investment, although significant U.S. investment also is found in the telecommunications and agriculture sectors.

A combination of natural factors--climate, the longest barrier reef in the Western Hemisphere, numerous islands, excellent fishing, safe waters for boating, jungle wildlife, and Mayan ruins--support the thriving tourist industry. Development costs are high, but the Government of Belize has designated tourism as one of its major development priorities. In 2006, tourist arrivals totaled 900,000 (more than 90% from the United States).

Belize's investment policy is codified in the Belize Investment Guide, which sets out the development priorities for the country. A country commercial guide for Belize is available from the U.S. Embassy's Economic/Commercial section and on the Web at: http://belize.usembassy.gov/investing_in_belize2.html

Infrastructure
A major constraint on the economic development of Belize continues to be the scarcity of infrastructure investments. As part of its financial austerity measures started in late 2004, the government froze expenditures on several capital projects. Although electricity, telephone, and water utilities are all relatively good, Belize has the most expensive electricity in the region. Large tracts of land, which would be suitable for development, are inaccessible due to lack of roads. Some roads, including sections of major highways, are subject to damage or closure during the rainy season. Ports in Belize City, Dangriga, and Big Creek handle regularly scheduled shipping from the United States and the United Kingdom, although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports. American Airlines, Continental Airlines, U.S. Air, Delta Airlines, and TACA provide international air service to gateways in Dallas, Houston, Miami, Charlotte, Atlanta, and San Salvador.

Trade
Belize's economic performance is highly susceptible to external market changes. Although the economy recorded a growth rate of 4.0% in 2006, this achievement is vulnerable to world commodity price fluctuations and continuation of preferential trading agreements, especially with the United States and the European Union (cane sugar) and the United Kingdom (bananas).

Belize continues to rely heavily on foreign trade, with the United States as its number-one trading partner. Imports in 2005 totaled $518.83 million, while total exports were only $212.83 million. In 2005, the United States provided 39% of all Belizean imports and accounted for 52.2% of Belize's total exports. Other major trading partners include the United Kingdom, European Union, Canada, Mexico, and Caribbean Common Market (CARICOM) member states.

Belize aims to stimulate the growth of commercial agriculture through CARICOM. However, Belizean trade with the rest of the Caribbean is small compared to that with the United States and Europe. The country is a beneficiary of the Caribbean Basin Initiative (CBI) program, which forms part of the U.S.-Caribbean Basin Trade Partnership Act--signed into law by President Clinton on May 8, 2000--a comprehensive U.S. Government program designed to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products. Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI. U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry. European Union (EU) and U.K. preferences also have been vital for the expansion and prosperity of the sugar and banana industries. However, these two markets face considerable World Trade Organization (WTO) challenges.


Facts at a Glance: Geography - People - Government - Economy - Communications - Transportation - Military - Climate - Current Time - Ranking Positions
Notes and Commentary: People - Economy - Government and Political Conditions - Historical Highlights - Foreign Relations - Relations with U.S.



Facts at a Glance
Geography
People
Government
Economy
Communications
Transportation
Military
Climate
Current Time
Ranking Positions


Notes and Commentary
People
Economy
Government and Political Conditions
Historical Highlights
Foreign Relations
Relations with U.S.





   Privacy & Disclaimer

   Portions of this site are based on public domain works from the U.S. Dept. of State and the CIA World Fact Book
   All original material copyright © 2002 - GeographyIQ.com. All Rights Reserved.
   For comments and feedback, write to us at [email protected].