Belize: Staff Report for the 2006 Article IV Consultation
IMF Staff Country Reports, October 20, 2006
Source details
- Canonical URL
- Belize: Staff Report for the 2006 Article IV Consultation
Other formats
Bibliographic details
- Published: October 20, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451805536.002
Executive summary
- Overly expansionary macroeconomic policies contributed to a widening of current account deficits, an unsustainable buildup of public debt, and the erosion of international reserves.
- The Belize government has already made commendable strides in correcting macroeconomic imbalances through measures to increase tax collection, rein in discretionary current expenditure, and cut capital expenditure.
- These efforts alone are not sufficient to bring the public finances and the balance of payments back on a sustainable path; supportive structural reforms in the fiscal and monetary areas should be implemented.
Key findings
- Macroeconomic imbalances resulted in:
- widening of current account deficits;
- an unsustainable buildup of public debt;
- erosion of international reserves.
- Government corrective measures to date include:
- measures to increase tax collection;
- restraints on discretionary current expenditure;
- cuts to capital expenditure.
Policy recommendations
- Continue fiscal consolidation efforts beyond revenue measures and expenditure restraint.
- Implement supportive structural reforms in the fiscal area.
- Implement supportive structural reforms in the monetary area.
- Strengthen debt management practices and public sector financial sustainability (implicit in findings on public debt).
Content in this bundle
- _cr06369 — IMF staff report excerpt