By Aaron Humes: While the restructuring of the non-lamented “Superbond” for the Blue Bond played a key role, the primary driver of the 45 percent reduction of debt to GDP ratio from 133 percent to 88 percent in barely two years, according to the Government of Belize, is a rebound in economic output and the work of the people of Belize.
First quarter GDP estimates from the Statistical Institute of Belize recorded rebounds in the secondary and tertiary sectors of the economy, particularly manufacturing and services. Industries that led the way include manufacturing; construction; electricity production; water production; hotels and restaurants; wholesale and retail trade; and transport. Belize’s economic output had reached higher levels than what was recorded for pre-pandemic 2019, the government states.
And it reminds us that the restructured Blue Bond debt-for-nature swap reduced external debt by 12 percent of GDP while contributing to necessary investments in marine conservation.
The Government has recently had to defend itself against more borrowing by an Opposition that accuses it of hypocrisy in condemning its borrowing tendencies during its time in government.
“The Government of Belize is committed to building on this momentum and recognizes that this achievement is a testament to the resilience of the Belizean people and collaboration of actors at all levels,” the statement concludes.