How Did Belize Achieve a $136 Million Economic Growth?

Belize’s economy experienced a significant boost in the second quarter of 2024, with a preliminary Gross Domestic Product (GDP) estimate of $1.432 billion. This is according to the Statistical Institute of Belize’s (SIB) latest figures shared today. This marks a 10.5% increase, or $136 million, compared to $1.296 billion during the same period in 2023. 

Christopher Hulse, Statistician II in the Economic Statistics Department, said that growth was evident across all three economic sectors. The economic sectors mentioned in the report include three main categories. The primary sector encompasses industries involved in the extraction and production of raw materials, such as agriculture, fishing, and mining. The report highlights agricultural industries like citrus, bananas, sugarcane, and livestock, as well as fishing. The secondary sector involves manufacturing and construction activities, including food production, beverages, electricity, water, and construction. The tertiary sector focusses on service-based industries, which include wholesale and retail trade, accommodation and food services, transportation, financial services and insurance, and government services. 

 

 

According to Hulse, the primary sector rebounded with activities valued at $107.8 million, up 5.6% from the previous year. Key agricultural gains included a surge in citrus production, which rose from 1.9 thousand metric tonnes to 4.8 thousand metric tonnes, along with increases in banana (22.9%) and sugarcane (14.1%) production.

The secondary sector expanded by 8.4%, or $210.8 million, driven primarily by a 35.5% increase in electricity generation and a 7.3% rise in construction. However, manufacturing faced challenges, with flour production declining by 7.5%.

The tertiary sector, the largest contributor at $911.8 million, saw a 10.5% increase. Notable growth was recorded in accommodation and food services (33%), and wholesale and retail trade (23.1%).

 

 

SIB’s Director General, Diana Castillo-Trejo, says that climate change continues to affect all sectors, particularly agriculture, where adverse weather has damaged crops. “It is fair enough to say that climate change is having an impact probably across all the sectors of the economy. The most obvious one is agriculture,” she said, adding, “It is important to note that electricity production refers to what we produce locally, excluding imported electricity.” 

Belize’s economy is rebounding strongly, with a 10.5% growth in Q2 2024 driven by improvements across all sectors. However, the recognition of climate change impacts highlights ongoing vulnerabilities.