Economists Applaud Belize’s Fiscal Turnaround

Belize’s financial turnaround is starting to look like one of the country’s quiet success stories. Just a few years ago, in 2020, the nation was drowning under a debt‑to‑GDP ratio of roughly a hundred and thirty percent, numbers that had economists sounding the alarm. Fast‑forward to today, and Belize has chopped that burden in half, landing near sixty‑five percent. Economist Dr. Phillip Castillo says that shift doesn’t just look good on paper, it puts Belize comfortably within the zone that global financial institutions consider healthy, even with the national debt still topping four billion dollars.

 

Dr. Phillip Castillo, Economist

“The size of the debt is not by itself a problem. The problem is the percentage of the debt in comparison to GDP. I think we are around sixty percent, which is what the international financial agencies regard as acceptable. So, the size of the debt is not a problem. You want the debt as a percentage of GDP to remain in the sixty-percent range. If that is so, then it is not seen as a problem. That is precisely how it has to be viewed, that Belize by all indications previously was substantially indebted. Now to the extent that we have the Blue Bonds and those have served to reduce the national debt to a more sustainable level, that has to be seen as a positive.”

 

GOB’s Ambitious Public Spending Strategy Unveiled

 

The government is pouring new energy and serious money into education, health, and infrastructure, calling it one of its biggest investment pushes in years. Officials say these upgrades are overdue and they’re the foundation for long‑term growth, giving Belize a healthier, better‑educated population and modern systems that actually keep the country moving. But how does an economist see it? We put that question to Dr. Phillip Castillo.

 

Dr. Phillip Castillo, Economist

“A healthy and educated population is a productive population. So, you want governments to be involved in health at all levels. So, you want spending on education and health at all levels and you want that spending to be efficient, effective and meaningful. Now that might be a different challenge. But yes you always want your government to be involved in education and health. And we see it happening in that at least our primary road network seems to be reasonably ok. I am old enough to know when it took you just about a whole day to get from Punta Gorda to Belize City. That is no longer so. You can get from Punta Gorda to Belize City in a matter of hours on very good roads. So you want your infrastructure development to occur, but infrastructure is more than just roads. You are also looking at utilities, water and sanitation, those also form part of infrastructure that government’s ought to be involved in.”

 

Dr. Castillo says the government’s big spending only pays off if it’s efficient and meaningful, because real growth comes from strong people and reliable services.

 

Attention readers: This online newscast is a direct transcript of our evening television broadcast. When speakers use Kriol, we have carefully rendered their words using a standard spelling system.

 

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