Belize - Economy

Economy

Belize has a small, essentially private enterprise economy that is based primarily on agriculture, agro-based industry, and merchandising, with tourism and construction recently assuming greater importance. In 2006, the exploitation of a newly discovered crude oil field near the town of Spanish Lookout has presented new prospects and problems for this developing nation. It has yet to be seen if significant economic expansion will be made by this. To date, oil production equal 3,000 bbl/d (480 m3/d) (2007 est.) and oil exports equal 1,960 bbl/d (312 m3/d) (2006 est.). The country is a producer of industrial minerals. Sugar, the chief crop, accounts for nearly half of exports, while the banana industry is the country's largest employer.

The new government faces important challenges to economic stability. Rapid action to improve tax collection has been promised, but a lack of progress in reining in spending could bring the exchange rate under pressure. The tourist and construction sectors strengthened in early 1999, leading to a preliminary estimate of revived growth at 4%. Infrastructure continues to be a major challenge for the economic development of Belize. Belize has the most expensive electricity in the region. Trade is important and the major trading partners are the United States, Mexico, the European Union, and Central America.

Belize has five commercial banks, of which the largest and oldest is Belize Bank. The other four banks are Heritage Bank, Atlantic Bank, FirstCaribbean International Bank, and Scotiabank (Belize).