Bring fact-checked results to the top of your browser search. Economy Belize has a developing free-market economy.
Economic Snapshot for Central America November 7, Regional economy likely gained steam in Q3 According to a preliminary estimate, the economy of Central America and the Caribbean should have expanded 3. Excluding Puerto Ricogrowth likely picked up from 3. Other indicators for the quarter, such as tourist arrivals, employment and credit growth, also painted a positive economic picture.
In contrast, economic activity data suggests Panama continued to perform sluggishly after a month-long strike disrupted activity in Q2. A notable exception is Nicaragua, which appeared to contract sharply due to violent civil unrest.
With the fiscal deficit already up significantly so far this year, the swift approval of the reform is considered a vital first step to putting the public finances on a sustainable long-term footing.
In October, the government presented its budget, which foresees a sharp fall in revenues next year, and correspondingly cut spending allocations to contain the fiscal deficit. Dialogue between President Daniel Ortega, business and civil society has proved fruitless, and ongoing political tension is likely to continue to dampen tourism and FDI inflows.
Growth should be solid going forward, but downside risks remain Over the next few quarters, Central America and the Caribbean should continue to benefit from solid domestic demand and the booming U. Moreover, Puerto Rico should continue to recover as rebuilding efforts accelerate and thanks to a very favorable base of comparison.
Uncertainty over immigration policy in the United States—particularly the Temporary Protected Status of many Central Americans currently residing in the U.
Internally, a further deterioration of the political situation in Nicaragua, a failure to enact tax reform in Costa Rica, and potential political uncertainty in Guatemala leading up to elections next year are the key risks. FocusEconomics panelists expect regional growth of 3.
El Salvador was the only country to have its growth forecast upgraded this month. Our panelists see regional growth at 3.
Moreover, private consumption should have been buttressed by strong remittances growth in the quarter, which reached their highest USD value on record in August, benefiting from continued robust momentum in the U. However, the agency noted that political instability is hampering growth.
Looking at Q4, floods and heavy rainfall in October could drag on economic activity somewhat.
Momentum in the economy is expected to edge up next year on the back of strong domestic demand. Private consumption is likely to benefit from a tight labor market and robust remittances inflows, while growth in government consumption and fixed investment should also accelerate.
FocusEconomics Consensus Forecast panelists expect the Guatemalan economy to expand 3.
Credit growth stayed in double digits throughout the period and employment growth picked up, likely supporting private consumption. Moreover, tourist arrivals surged in September in annual terms, boosted by greater arrivals from the U.
The trade deficit, however, likely widened on greater oil imports. Despite higher oil prices, international reserves are comfortable and have risen year-to-date, supported by remittances, FDI and tourism inflows.
This marks a further sign of warming relations with the Asian giant, which could translate into increased investment and commercial opportunities going forward.
Looking ahead, growth will likely moderate slightly but should still compare favorably to regional peers. A healthy labor market, solid fixed investment and spillovers from the expansion in the U.
Downside risks stem from higher oil prices, tighter international financial conditions, vulnerability to extreme weather events and elevated debt servicing costs. FocusEconomics panelists expect GDP growth of 4. Forpanelists see the economy expanding 4. Furthermore, freight data for the Panama Canal shows strong year-on-year growth in July and August, though September logged a decline due to a high-base effect.
Meanwhile, on 31 October the parliament approved an expansionary budget forincluding USD 9 billion dedicated to investment projects.Tourism is the Number One Foreign Exchange Earner for the Belize Economy Tourism is the number one foreign exchange earner in this small economy, followed by exports of marine products, citrus, cane sugar, bananas, and garments.
Natural Resources in Belize Grown and Consumed at Home Posted by Sean Connors on Jun 21, PM One of the biggest things that strikes people upon their first visit to the country of Belize is the abundance of fresh fruit, seafood, organic meats, and even wine.
Infrastructure remains a major economic development challenge; Belize has the region's most expensive electricity. Trade is important and the major trading partners are the United States, Mexico, the European Union, and Central America. Belize has five commercial .
The economic development of Central America is the middle level, although competitiveness is remarkable: Guatemala: Is the largest economy in the isthmus and the tenth in Latin America, has the largest nominal GDP ($, million) and GDP purchasing power parity (PPP) of .
Get the Full FocusEconomics Central America & Caribbean Report. PANAMA | Economy has a soft H1, pick-up expected in the second half.
Economic activity likely remained feeble in the second quarter, following the weakest growth print in over seven years in the first quarter. Infrastructure remains a major economic development challenge; Belize has the region's most expensive electricity.
Trade is important and the major trading partners are the United States, Mexico, the European Union, and Central America. Belize has five commercial .