Towards Achieving Sustained Economic Growth in Small Developing States: A Primer on Belize

IMF Working Papers, March 6, 2026

Source details

Canonical URL: Towards Achieving Sustained Economic Growth in Small Developing States: A Primer on Belize

Authors: Ziad W Amer, Jiajia Gu, Metodij Hadzi-Vaskov, Bunyada (Mos) Laoprapassorn, Shane R Lowe
Published: March 6, 2026
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9798229038492.001

Study focus: key challenges facing small developing states (SDS) using the case of Belize.
Empirical analysis centers on three pillars:
- (i) improving access to finance;
- (ii) exploring drivers of labor force participation with a view to increasing the labor force contribution to growth;
- (iii) assessing the tourism sector’s capacity constraints.
Core conclusion: constraints across finance, labor participation, and tourism capacity jointly shape Belize’s growth prospects.

Both demand and supply factors constrain private sector credit.
Primary channels identified:
- level of lending rates;
- complex collateral processes;
- legacy of high NPLs;
- extent of regulatory capital above the regulatory minimum.

Analysis of heterogeneity in labor force participation gaps between men and women emphasizes:
- tourism’s share in the services sector;
- youth’s educational attainment;
- disparity in labor market outcomes;
- availability of childcare.
Objective: increase labor force contribution to growth by addressing these drivers.

Critical determinants of tourism sector prospects:
- hotel capacity;
- flight availability;
- cost competitiveness.