The Belize Business Bureau, which is a chartered private business sector group, has raised alarm over the economic situation in the country. The Bureau issued a release today indicated that it is concerned that Belize is at risk of devaluation if the state of affairs is not corrected.
The release notes that Belize is facing seven major issues, including revaluation of the Belize dollar, unsustainable GDP to debt ratio that could possibly rise to 101.7%, negative GDP growth, loss of correspondent banking, and a widening funding gap.
The release notes that the IMF had warned in 2015 that if the GDP to debt levels increased to 100%, it would reflect a 30% depreciation of the Belize dollar.
The Bureau advised that to maintain the exchange rate, Belize needs monetary discipline, minimal uncertainty and a controlled trade balance.
The Bureau also shared proposals to achieve this, including freezing the debt, a mandatory reduction of 7% every year, discontinuing contract officers for two years, supporting the Stake Bank Cruise Terminal in Belize City, scaling down the strict requirements for Mexican nationals to visit Belize to a voter’s ID card, and forcing the Commercial Free Zone in Corozal to prescribe to stricter regulations.
The Business Bureau indicates that the country needs a public and private sector approach to restoring the economy.