In his State of the Nation address earlier this week, Prime Minister John Briceño spoke about the government’s efforts to create better economic opportunities for Micro, Small and Medium Enterprises (MSMEs). He said that the government has enacted legislative amendments to its fiscal incentive programs. These programs have been updated to expand the range of eligible sectors and accommodate uptake among MSMEs. The PM used the digital services sector, or the B.P.O. sector, as now being able to apply specific features, such as work from home arrangements and on-site daycare for single mothers. Additionally, Prime Minister Briceño said that recently, the government introduced the Belize Economic Empowerment Program, where grant funding from the Caribbean Development Fund will provide eight hundred thousand dollars to ninety-three MSMEs. Along with this will come training and mentorship to ensure their sustainability. And to further support small businesses, small farmers and new homeowners, the PM said that the government is making affordable financing more accessible. These efforts, Meighan says are important for the development of a sector that represents a significant percentage of Belizean businesses.
Katherine Meighan
Katherine Meighan, President, B.C.C.I.
“MSMEs are a very, very important part of our economy. I think it’s an important part of any economy, in my opinion. Because they really make up, they’re fuel. They’re a fuel for growth. They’re a fuel for innovation. They are a part of the entrepreneurial cycle. They also play a critical role, like some of these other industries, B.P.O.’s for instance, in the growing of the middle class. And the middle class in any economy, any community is significant because they’re the blood, if you want to say it that way. And so, I’m happy to see, wherever there are opportunities and incentives to encourage their continued growth. MSMEs need technical training and support. They need access to financing. They need support in many, many areas in terms of packaging, for instance, marketing. You can name quite a few. And what I also encourage and what I see, and this is something we share with all of our MSMEs that are members of the Chamber – we encourage them to come together, network, and identify what these opportunities are and not be fearful to jump on them and learn. The quicker they can formalize and develop themselves, the better off they will be.”
During his State of the Nation address earlier this week, Prime Minister John Briceño highlighted the decreased inflation rate as one of the successes of his administration. He said inflation has fallen from six-point-three percent to three-point-eight percent since 2022. However, in response, Belize City residents claim that they have not observed the decrease and complained about the high cost of living. We asked the Prime Minister for a response to these complaints. Here was his response.
Britney Gordon
“And some people do not agree that inflation is down though, sir, a lot of people, I know you mentioned this, but what can you say to those people that are disputing that?”
Prime Minister John Briceño
Prime Minister John Briceño
“I understand what they’re saying. The prices indeed have gone up from 2020, but when you look at the rate of inflation, you compare it to the previous year, not to 2020. Last year, the inflation rate was over four percent and now it’s down to about three percent. About 3 percent of last year, not of 2020. So yes, the prices are still high, and we’re hoping that with time and competition, that the prices are going to come down even more. The issue of price gouging it exists and wherever we find that we try to act as best as we possibly can.”
While shoppers disagree with Prime Minister Briceño that there has been a two-point-five percent decrease in inflation since 2022, President of the Belize Chamber of Commerce and Industry, Katherine Meighan told News Five today that there are several variables that factor into the inflation rate. Tied very closely to that, she explained, is the issue of importation.
Katherine Meighan, President, B.C.C.I
“If you look at the statistics, just generally just what’s out there and you can pull inflation has plateaued. Nonetheless, there are effects that are coming into play. Examples: sometimes what you’re looking at is there is older stock that has now finished and newer stock has come into play. If it’s a commerce related matter. Now, additionally, it could be a demand and supply component as well? So there’s lots of angles that can cause that. Whether it’s all directly connected to external effects, we’ll have to continue to evaluate and see. Nonetheless, I would say, for us, we need to look at the fact that the more we are dependent on external sources, for instance, for food and packaging, the more we’re going to have these sort of effects where inflation comes in and can increase prices in a very unpredictable way.”
The government of Belize recently authorized over ten thousand cases of Corona beer to be imported into the country. The volume of the shipment raised concerns among local brewers about the impact that the flood of Mexican beers would have on the Belizean market. Prime Minister John Briceño explained that the importation is due to a shortage of local beer at a time of high demand. Here is more on that.
Prime Minister John Briceño
Prime Minister John Briceño
“It’s ten thousand cases. And not a single bottle has been imported yet. They just issued, or about to issue the the permit to import it. What has been happening is that there has been a shortage of Belikin, there has been a shortage of Coca-Cola in the market. I got a message from one of my constituents yesterday saying, here with the twenty-first, and we are short of soft drinks and beer, and this is a time when we can sell. And I’ve been in touch with the CEO, mister Michael Bowen, an excellent businessman and Belizean. And he’s saying that they have increased the production and sales have increased. But it seems because of the growth of the of the economy, we’ve been growing very fast, it’s been difficult to catch up. So there’s some shortages. Is that a policy that we want to go down to? I don’t think so. I don’t think that’s a policy that to we want to support local industry but if from time to time there’s a shortage we may need to consider in the short term to allow that to come. We are still looking at the issue of the Corona beer and probably quite likely at the next cabinet probably it will become will come up for discussion.”
Belize’s biggest brewery, Bowen and Bowen, has expressed disappointment with the Government of Belize for granting a permit to another private company to import ten thousand cases of Corona beer from Mexico. And while the PM says it’s to meet growing demands, B&B says they do not have a shortage of beers. Today the company’s Corporate Relations Manager, Rosanna Villanueva, spoke with us on the matter.
On the phone: Rosanna Villanueva, Corporate Relations Manager, Bowen & Bowen Ltd.
“It came to our attention recently as well, and I mean, I can’t express how deeply disappointed we are at what seems to be some sort of shift in policy, Marion. For us at Bowen and Bowen. it seems to us that there’s no effort being made to protect Belizean industry with a move like this. We – you know, if you try to cross the border to Mexico with even one case of beers, you’ll have to pour it out. And the reason for that is that the Mexican government is protecting its industries. So, for us, it just seems as though there’s the lack of, of that passion to protect Belizean industry as well. As well, we’ve heard one of the rationales for this is something about supplying the tourist industry, which that makes no – there’s no logic in that, because if someone comes to Belize to visit Belize, they want to drink a Belizean beer, they’re not going to want to drink a Mexican beer. So, that doesn’t make any sense to us. It’s just very disappointing that something like this has even been considered, or, you know, seems to be happening at this point. There’s no shortage. A couple months ago, we did have production issues, which, you know, we were very open with the media. We shared that with the media what we were dealing with, but our supply has stabilized. We have all our beers being produced in the market. So there’s no shortage as such right now. If it’s a matter of variety, Bowen and Bowen produces a wide range of beer brands. We also import some beers from CARICOM. So it’s not a matter of lacking variety or anything in the country. But yes, we are supplying the country. Our beers are being produced, so there is no shortage.”
The Prime Minister also had good news for people who earn less than twenty-nine thousand dollars per annum. He said that effective January first, persons who fall in that bracket will no longer pay income tax. But while that is good for those in the working class, how will the government fill the void that is created by that adjustment? That is a question that the Belize Chamber of Commerce and Industry is also asking.
Katherine Meighan, President, B.C.C.I
“That is a question that, of course, all of us are asking. That is a question that the government has to answer. But that’s a question where we are hoping to be able to collaborate with the government on that. Now, we certainly can see the benefits. You know, from our members continuously, when we speak to members, we hear the challenges of where the income tax as it is and at that threshold has not necessarily helped to build productivity from within. So we’re looking forward to that. Now you’re right. There’s the other side of the game and how can we collaborate with the government to ensure that the revenue neutrality angle does not negatively affect another side of the game or that cycle, another piece of the pie, whatever you want to say. And will that negative effect be more dramatic than the, than the positive that comes into it.”
On Wednesday, Business Senator, Kevin Herrera said that the shortage of labour that B.P.O. companies are currently experiencing suggests that the Prime Minister’s comments on unemployment are indeed so. The PM, using figures published by the Statistical Institute of Belize earlier this year, stated that unemployment was down to three percent. Today, the President of the Belize Chamber of Commerce and Industry, who is the general manager of a B.P.O., also agreed that the numbers must be reflective of a low unemployment rate. She added that it’s good when an industry has grown to a point where there is need for further development, such is the case with the B.P.O. sector. Meighan is of the view that there is now need for some intervention by the Ministry of Education to take the training of B.P.O. agents and employees one step further.
Katherine Meighan
Katherine Meighan, President, B.C.C.I
“The B.P.O. sector has been an amazing contributor towards the Belizean economy. Part of that is the diversity angle. B.P.O.’s also play a role, just like the tourism industry, agriculture, et cetera, et cetera. I think that B.P.O.’s offer in general for Belizeans across the board, a professional environment, fair wages, and it also offers an opportunity for career growth and development. Now, we are currently seeing that the unemployment rate is low, and of course that connects to the continued growth of this sector, especially this sector that is very much connected to labor because the labor is really the bones, the heart, the assets. And what we are hoping to do, and, what we see as a solution going forward is really trying to collaborate and connect. We have our B.P.O. members that are asking us for support with training and development professional skills. And we also want to collaborate and connect and encourage the government to do the same because one, there’s opportunities from within for movement upwards through professional development, training, et cetera. There are also these opportunities where we can also prepare for the future. So we can work with the Ministry of Education to talk about what is the potential campaigns and what are the opportunities coming into the longer term and how can we connect that to the educational curriculum.”
During his State of the Nation address, Prime Minister John Briceño, said, “Inflation is down, falling from 6.3% in 2022 to 3.8% in 2024.” However, when News 5 asked Belize City residents, we got a different answer. One resident said, “I don’t know where this come down because I see the price of basic things gone up,” and another said, “We deh out ya and we di see the economy, exactly what di happen. Tell and talk the truth to the people mek the people know because wi do have inflation da Belize and deh have it da America.”
A third city resident we spoke with said, “Cost ah living can’t goh down when every week nearly everything di goh up. Every other two weeks everything di nearly double the price.”
When we asked for his response to the statements of some Belize City residents, PM Briceño told News 5, “I understand what you’re saying. The prices indeed have gone up from 2020, but when you look at the rate of inflation, you compare it to the previous year. Not to 2020. So last year the inflation rate was over 4% and now it’s down to about 3%, but 3% of last year, not of 2020. So yes, the price are still high and we hoping that with time and competition that the prices are going to come down even more.”
As for price gouging, the PM said, “It exists and wherever we find that, we try to act as best as we possibly can.”
The entrance to the Sir Edney Cain Building in Belmopan was transformed to accommodate Prime Minister John Briceno’s State of the Nation address this morning. His twenty-minute speech was briefly interrupted by the rain; nonetheless, PM Briceño touched on every sector, from business to education, health, infrastructure, job creation and even sports. He made a couple announcements that were met with mixed reactions, including an amendment to the income tax regime. The event saw the attendance of elected representatives, government officials, diplomats and primary school students. News Five’s Paul Lopez was there. He filed the following report.
Paul Lopez, Reporting
A tent was pitched in front of the Sir Edney Cain Building. A podium was placed at the entrance and bleachers were erected for primary school students to take their seats behind the head of government. All twenty-seven elected PUP area representatives sat in front of the podium cheering on Prime Minister John Briceño, as he delivered his State of the Nation address.
Prime Minister John Briceño
Prime Minister John Briceño
“I am happy to report that the State of the Nation is stronger, more hopeful and more confident than at any time in our forty-three years.”
It’s a presentation that is traditionally reserved for Independence Day. This year, however, the Briceño administration decided to forego the annual tradition to avoid the political mudslinging that often plays out in front of the diplomatic corp.
Prime Minister John Briceño
“Because Belizeans are working, and Belizeans are winning. For the first time ever, ninety-seven of every one hundred Belizeans who wants a job have found one. The SIB reports that the unemployment rate stood at three percent since April of this year. Never before has jobs been so available and never before has the minimum wage been so high.”
Prime Minister Briceño says the nation’s gross domestic product has grown by thirty-four percent since 2020, with 2023’s GDP now surpassing six billion dollars. He says it’s the highest level in the country’s history.
Prime Minister John Briceño
“To further support small business, small farmers, even new homeowners, Government is making access to finance more affordable. And, as we ring in the New Year, Government will pass legislation so that all mortgages, assignments and cancellations of mortgages for less than one hundred thousand dollars will be exempt from stamp duty. This exemption will surely assist lending institutions to compete for your business and bring down interest rates.”
Perhaps the biggest revelation made by Prime Minister Briceño during his speech was the announcement of a new income tax regime.
Prime Minister John Briceño
“Effective January first, in support of employees, Cabinet has approved that all workers who earn less than twenty-nine thousand dollars will be exempt from income tax. By increasing, and additional two thousand eight hundred and fifty-one workers will no longer be subject to income tax. The income laws will also be adjusted to remove existing anomalies so that in no instance will an employed person take home less pay when his/her salary increases. This amendment will benefit no less than seven hundred and thirty-three employed persons. Altogether, by these income tax deduction adjustments, over three point three million dollars more will be placed directly into the pockets of over three thousand, five hundred employees, an average of almost one thousand dollars increase in net take home pay.”
PM Briceño went on to say that with the expansion of NHI two hundred and sixteen thousand Belizeans have access to virtually free primary health care. Approximately one hundred thousand students are in the classroom at all levels of academia. Twenty thousand Belizeans have become first time landowners, and four hundred and fifty million dollars have been invested in total capital public investments.
Prime Minister John Briceño
“The only gain that matters are better life for the Belizean people. That our people are healthier that our children are assured a seat in the classroom, gaining useful knowledge with ready access to digital resources, that we are a society of landowners and homeowners and a widening middle class, and that our farmers and visitors have safe and efficient access to every corner of the country. This is the kind of progress that ignites a virtuous circle of sustainable and equitable prosperity.”
And, as a small drizzle quickly became a heavy downpour, the school children cleared the bleachers. Prime Minister Briceno kept on reading, relying solely on a printed copy of his speech as the teleprompter was drenched. He went on to reaffirm Belize’s support for Palestine and Ukraine and highlighted Belize’s trailblazing efforts in conservation, especially marine conservation.
Prime Minister John Briceño
“And so, judged by how we have improved ourselves and how we have enhanced our standing in the global stage, Belize can mark this forty-third birthday with confidence and pride. Momentum is on our side. The work continues. After four years of impressive achievements our promises shine with the aura of destiny. Together with the blessings of our creator we shall continue to reach higher heights and move ever forward. Que Vivia Belice.”
If you were listening keenly, the Prime Minister’s State of the Nation address is similar to the speech that would be given during the Independence Day ceremony in Belmopan. Well, that was intentional. Prime Minister Briceño and the Leader of the Opposition have agreed to give what would traditionally be their Independence Day addresses ahead of the actual day. PM Briceño explained that they are trying to avoid the political mudslinging that plays out at the official ceremony.
Prime Minister John Briceño
Prime Minister John Briceño
“Under the Musa government, he use to do the state of report to the nation as to where we are. But it stopped with the previous government. But now that we have recontinued that tradition, it is unfortunate what is happening with the leader of the opposition. He is going and saying some most outrageous stuff and it is an embarrassment to all of us, not only to himself, not only to his party but to the entire country. I remember many ambassadors, they are afraid to say anything, but usually when we are talking on a side they would tell us, what is wrong with this person. So, to avoid that embarrassment with our visitors, we decided it is best to do this today. We consulted with him, and I guess he will probably have a press meeting or briefing with you all, supposedly tomorrow to answer back. But at least it is not on Independence Day. I have always said, Independence Day should be one day that we should set our differences aside. We will always have these differences, be it in politics or relationships. But the twenty-first is one day we should leave all of that politics behind and come to be proud and patriotic Belizeans and look what we have accomplished in those short forty-three years. We are still a baby as a nation, but it was important to take whatever corrective measures where we are going wrong and fix that. That is what we are doing. We want to avoid that travesty. So, on the twenty-first the leader of the opposition will be given an opportunity to give a greeting, a short message for the twenty-first and I will do the same.”