Belize targets 50% debt-to-GDP ratio by 2029 under new fiscal strategy plan

Published by [email protected] at May 18, 2025

Posted: Sunday, May 18, 2025. 2:21 pm CST.

By Breaking Belize News Staff: During his 2025/2026 Budget Speech, Prime Minister John Briceño outlined a bold fiscal vision aimed at securing Belize’s long-term economic resilience. Central to the plan is a new Fiscal Strategy that will target a reduction in the public debt-to-GDP ratio to 50% by the year 2029.

Briceño said that although the country has made a robust recovery following the COVID-19 pandemic, sustained growth demands relentless fiscal discipline and government-wide coordination. The Government intends to maintain a primary budget surplus of 1.5 to 2.0 percent of GDP in the medium term to achieve this goal.

Acknowledging that public debt has already fallen to the 60% range—surpassing IMF expectations—the Prime Minister warned that further reductions will be challenging due to global interest rate volatility and GDP growth constraints. Still, Belize remains committed to fiscal responsibility.

The government projects gross financing needs to average 7.5% of GDP. These needs will be met through a combination of structured Blue Bond repayments, disciplined fiscal management, and minimized reliance on short-term domestic borrowing.

Briceño also announced plans to roll out a detailed Fiscal Strategy Plan, which will include a Medium-Term Fiscal Framework (MTFF). This framework is expected to be published on the Ministry of Finance’s website later this year and will outline forward-looking revenue and expenditure goals. It will also integrate disaster risk contingencies to help Belize withstand climate shocks—particularly hurricanes, floods, and related natural hazards.

The Prime Minister emphasized that public access to the plan will improve transparency and boost investor confidence in Belize’s fiscal future.

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