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

_IMF Working Papers, March 6, 2026_

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**Canonical URL:** [Towards Achieving Sustained Economic Growth in Small Developing States: A Primer on Belize](https://www.imf.org/en/publications/wp/issues/2026/03/06/towards-achieving-sustained-economic-growth-in-small-developing-states-a-primer-on-belize-574518)

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## Bibliographic details
- 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

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### Overview
- 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.

### Access to Finance — Findings
- 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.

### Labor Force Participation — Findings
- 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.

### Tourism Sector Capacity — Findings
- Critical determinants of tourism sector prospects:
  - hotel capacity;
  - flight availability;
  - cost competitiveness.

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_Source: https://www.imf.org/en/publications/wp/issues/2026/03/06/towards-achieving-sustained-economic-growth-in-small-developing-states-a-primer-on-belize-574518_