If Belize owes BZ$4.42 billion, does every citizen owe BZ$11,050? The truth about national debt and what it really means

Published by [email protected] at May 13, 2025

Posted: Tuesday, May 13, 2025. 6:39 am CST.

By Horace Palacio: With Belize’s national debt standing at BZ$4.42 billion and a population of around 400,000, a simple division gives a startling figure: each Belizean would “owe” approximately BZ$11,050 if the debt were to be evenly distributed.

But is that the right way to understand national debt?

Not quite.

This per capita figure is often used in public debates and media headlines to evoke concern or urgency. While it highlights the scale of the debt in relation to the population, it doesn’t accurately reflect how public debt works in macroeconomic terms. Countries do not repay debt the way individuals do. Instead, they manage it over time relative to their economic output (GDP), interest obligations, and ability to borrow at sustainable rates.

In his 2025/2026 Budget Address, Prime Minister John Briceño emphasized that Belize’s public debt has remained relatively flat, increasing only slightly from BZ$4.2 billion in 2020 to BZ$4.42 billion in 2024. During the same period, the country’s GDP grew from BZ$4.086 billion to BZ$6.825 billion—a 67% increase, largely driven by productivity, recovery, and IMF-supported GDP revaluation.

This economic growth means Belize’s debt-to-GDP ratio has plummeted from 132% to 61%, a remarkable improvement and well within the sustainable range for developing economies, according to international standards. The IMF and World Bank consider debt-to-GDP ratios below 70% as generally manageable for small economies—especially those like Belize that are showing positive fiscal performance.

Interest payments are also under control. Despite modest increases in total interest paid—from BZ$105 million in 2021 to BZ$119 million in 2024—Belize now spends just 7 cents of every dollar in revenue and grants on interest, down from 9 cents. This means more money remains available for education, healthcare, infrastructure, and social programs.

Belize’s debt is also relatively cheap to maintain, with average interest rates of 2.5% on domestic debt and 3.5% on external debt. For context, the U.S. government currently pays around 4.3% on its 10-year Treasury bonds—making Belize’s borrowing costs surprisingly low in comparison.

So while BZ$11,050 per citizen may sound alarming, that number alone does not tell the full story. The real measure of whether Belize “owes too much” lies in its ability to service the debt, grow the economy, and invest wisely—all of which the government appears to be doing with increasing discipline.

As PM Briceño put it, “Sovereign debt is an inter-generational exchange—we either burden the unborn with repayments or gift them fiscal space.” For now, Belize is leaning toward the latter.

Advertise with the mоѕt vіѕіtеd nеwѕ ѕіtе іn Belize ~ We offer fully customizable and flexible digital marketing packages. Your content is delivered instantly to thousands of users in Belize and abroad! Contact us at mаrkеtіng@brеаkіngbеlіzеnеwѕ.соm or call us at 501-612-0315.