Belize » Introduction

Basic Economic Facts

GDP Composition by Sector

The small, essentially private enterprise economy is based primarily on agriculture, agro-based industry, and merchandising, with tourism and construction assuming greater importance. Sugar, the chief crop, accounts for nearly half of exports, while the banana industry is the country's largest employer. Citrus production has become a major industry along the Hummingbird Highway.

In 2006, growth in the economy is likely to range between 2.0% and 3.0% as fiscal and monetary policies are tightened in a tactical way to slow consumption and improve the external current account position. Inflation is expected to rise to approximately 4.5% with the implementation of the General Sales Tax, high fuel prices at the pump and hikes in electricity rates. The export sector is expected to perform well with the advent of crude oil exports and higher earnings from citrus products, sugar and papaya driving up value of domestic exports by at least 12.0%. On the other hand, there are some concerns for the banana industry, which will be subject to the new and less favourable EU import regime. Its performance in 2006 will be a good indicator of the future viability of that industry.