IMF warns Belize to control its debt

The IMF has predicted that the real gross domestic product - GDP growth would be 1.5 per cent for 2021 and 6.2 per cent for the year 2022.

Belize: The Executive Board of International Monetary Fund – IMF’s report on completing the annual Article IV conversation with Belize has been provided, which warns Belize that after a challenging year created by the COVID-19 pandemic, the island has seen a drop in tourist visitors and after reduction in activity in contact-intensive sectors, Belize’s path to economic recovery is extended.

The Board of Directors of the IMF also underlined the necessity of recovering debt sustainability by assisting the helpless and implementing fundamental reforms to boost inclusive growth and enhance resilience.

IMF further stated, “We welcome the critical concentration measures approved this year and encouraged a further gradual increase in the primary balance, relying on revenue and expenditure measures, while strengthening the social safety net.”

“Tourist visitors remain subdued but are supposed to pick up in late-2021 when the COVID-19 vaccines become more widely available in advanced countries,” IMF added.

The IMF has predicted that the real gross domestic product – GDP growth would be 1.5 per cent for 2021 and 6.2 per cent for the year 2022.

The initial deficit increased from 1.3 per cent of GDP in the Fiscal Year of 2019 and 20 to 8.4 per cent in the Fiscal Year of 2020 and 21, and public debt rose from 97.5 per cent of GDP in the year of 2019 to 127.4 per cent in the year 2020.

The economic forecast of Belize island is subjected to downside perils, including a resurgence of the COVID-19 pandemic and the natural disasters. The IMF has suggested developing a Disaster Resilience Strategy to Belize to get away from this.