Economy in Belize
A still developing country, Belize is still facing plenty of problems in its domestic economic and industrial sectors. A resourceful country, Belize is located perched on a strategic piece of land that is covered by an expansive sea. Since its independence, this country has faced some real problems in its economy.
Forestry is perhaps the oldest occupation of people in Belize. It was so till 2oth century, when the resources of timber began declining. However with the decline of timber industry, agro based industries started appearing with acres of sugar plantations being set up all over the country. Recently, the agricultural operation has witnessed expansion of other activities like citrus fruits, bananas, seafood, and apparel. To curb misuse of available real estate land, the local government has enacted laws that allow non nationals to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres (40,000 m²) of rural land or more than one-half acre (2,000 m²) of urban land. Though the land in Belize is quite fertile, only about 10% is under active cultivation.
Economic activities are not really supported by any meaningful industries here in Belize. This is possibly due to high-cost labor and energy and a small domestic market. Very few established industries have their industrial setup in Belize. Tourism is the single big foreign exchange earner for the exchequer. Several Mayan relics, long line of beaches, pristine islands, barrier reefs, boating, fishing, trekking and wildlife are some of the most exciting tourism related activities. Tourism is the second thrust area after the domestic agriculture.
Infrastructure wise, Belize is still coming to terms with its less developed facilities. Although the basic amenities like electricity, water and communication facilities are better compared to other countries, it is still not very satisfactory. Road connectivity is developing, while ports of Belize are under development. Belize's economic performance is highly prone to external market changes and variations. Although moderate growth has been achieved recently, the achievements are prone for marked changes in international commodity price variations. Currently USA is the major trade partner and Belize also trades with U.K., European Union, Canada, Mexico, and Caribbean Community (CARICOM) member states.
Most of the economic activities rely heavily on agriculture, fisheries, horticulture, tourism and other sundry activities. The trade deficit has been growing over the years, mostly as a result of low international export prices for sugar and bananas. The average annual growth is expected to grow only at around 4% and majority of this growth is supported by tourism sector and peopple looking to retire. Most of the economic indicators are rather weak and low, while the per capita income stands at $3,100. However with some critical and intelligent planning, taking into consideration the foreign equity partnership, Belize can be a small economic powerhouse of the region.