Reinvigorating Growth in Belize

IMF Working Papers, February 4, 2019

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Reinvigorating Growth in Belize

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Bibliographic details

• Authors: Dmitry Vasilyev
• Published: February 4, 2019
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781484392188.001

Summary

• In the 1990s and early 2000s, Belize grew faster than its regional peers. By the mid-2000s, however, economic growth had slowed down to the regional average.
• A vicious circle of low growth and increasing public debt has been clouding Belize’s outlook.
• This paper applies a growth diagnostic approach based on the Hausmann-Rodrik-Velasco framework to investigate the main growth constraints and opportunities for higher growth in Belize.
• Improvements in access to finance and in the business climate could unlock Belize’s strengths.

Main findings and analytical focus

• Historical growth pattern:
  • Faster growth than regional peers in the 1990s and early 2000s.
  • Slowdown to regional average by the mid-2000s.
• Growth constraints identified via the Hausmann-Rodrik-Velasco growth diagnostic framework:
  • Low access to finance.
  • Weak business climate.
  • A reinforcing interaction between low growth and increasing public debt.
• Potential opportunities:
  • Addressing access to finance.
  • Improving the business climate to leverage Belize’s comparative strengths.

Policy recommendations and implications

• Prioritize reforms to improve access to finance for firms and entrepreneurs.
• Implement measures to strengthen the business climate to facilitate private-sector activity and diversification.
• Address public debt dynamics to break the vicious circle of low growth and rising debt.

Content in this bundle

• Reinvigorating Growth in Belize, WP/19/24, February 2019
  • Reinvigorating Growth in Belize, WP/19/24, February 2019 (Markdown version)
  • Reinvigorating Growth in Belize, WP/19/24, February 2019 (PDF)