Belize

Belize, an upper-middle-income country of roughly 400,000 people, is advancing reforms to strengthen fiscal sustainability, create jobs, and build resilience to climate and external shocks. With an economy heavily reliant on tourism, agriculture, and remittances—and closely tied to the United States—Belize remains vulnerable to global economic shifts and natural disasters.

The World Bank Group’s 2026-2035 Country Partnership Framework for Belize will support the country’s efforts to promote inclusive growth by enhancing public sector resilience, advancing the blue economy, and expanding education and employment opportunities for underserved populations.

Belize’s economy grew by an estimated 3.5% in 2024, up from 0.5% in 2023, driven by a surge in tourism, trade and transport. Inflation decelerated to 3.3 percent in 2024 and further to 0.8 percent for the year ending in August 2025, supported by easing pressures from major trading partners and oil prices. Public debt declined to 68.1% of GDP, down from 71.8% in 2023, aided by continued fiscal consolidation.

Despite progress, Belize faces structural challenges. The economy remains highly vulnerable to external shocks, with over 50% of exports and the majority of tourist arrivals linked to the United States. The exchange rate peg to the US dollar, reliance on imported energy, and exposure to climate-related disasters amplify risks. Barriers to private investment persist due to limited access to credit, infrastructure gaps, skills shortages, and high crime rates.

In 2024, 17% of the population lived on less than US$8.30 a day (2021 PPP), the upper-middle income country poverty line. Multidimensional poverty affected 22.1% of the population, with higher rates in rural areas (30.9%) and among children aged 0–14 (30.5%). Labor market conditions have been improving in 2025, with labor force participation rising to 59.1 percent in April, up from 57.4 percent a year earlier, and unemployment falling to 2.1 percent. Despite these improvements, female and youth participation rates remain low (46.9% and 42.1%, respectively).

Looking ahead, GDP growth is projected at 1.5 percent in 2025 and in the medium term, growth is expected to rise above 2 percent. Inflation is expected to stay below 2%.  Continued economic growth is projected to support a modest reduction in poverty, to just above 16% in 2026 and 16% by 2027. The debt-to-GDP ratio will remain above 60% until 2026. Risks include global policy uncertainty, higher interest rates, and natural disasters.

The World Bank Group’s program in Belize encompasses approximately US$150 million in investments, spanning lending, advisory services, and analytics.

The program supports several key priorities:

Enhancing fiscal resilience and debt management, leveraging Belize’s new access to concessional financing through the International Development Association (IDA). This enables longer-term, low-interest loans that are critical for sustainable development and fiscal stability.

Promoting climate resilience and disaster preparedness, addressing Belize’s vulnerability as one of the most disaster-prone countries in the world, where natural disasters cost nearly 4% of GDP annually. Key initiatives include the Blue Cities and Beyond Project, which strengthens coastal and marine ecosystem management, increases safe water supply and reduces land-based pollution discharges; and the Catastrophe Deferred Drawdown Option (Cat DDO), which provides rapid liquidity in emergencies.

Boosting economic growth and job creation through investments in tourism, renewable energy, agriculture, and education. IDA financing supports Belize’s goal of achieving 5% annual growth and creating 50,000 jobs over five years, with a focus on increasing female employment and improving early childhood education.

The Reliant and Resilient Energy System Project aims to strengthen the reliability and resilience of the national electricity system and enable greater renewable energy integration. IFC’s Scaling Solar Program promotes private investment in solar power, while MIGA’s guarantees facilitate foreign direct investment.

The Climate Resilient and Sustainable Agriculture project aims to increase agricultural productivity and the adoption of climate-smart agricultural approaches among project beneficiaries.

Strengthening public financial management and governance to improve service delivery and foster a more enabling business environment that attracts private investment and promotes economic inclusion.

Facilitating global partnerships and knowledge exchange, with World Bank technical assistance helping Belize build capacity in climate adaptation, disaster risk management, and fiscal policy. IFC’s Scaling Solar Program promotes private investment in solar power, while MIGA’s guarantees facilitate foreign direct investment.

Belize’s IDA membership marks a pivotal step in its development journey, providing access to concessional resources and technical expertise that are vital to overcoming its unique challenges and building a more resilient, inclusive economy.

The World Bank Group’s program in Belize encompasses approximately U$150 million in investments, spanning lending, advisory services, and analytics. The program supports:

• Boosting economic growth and job creation through investments in sectors like tourism, renewable energy, agriculture, and education. IDA financing supports Belize’s goal to achieve 5% annual growth and create 50,000 jobs over five years, focusing also on female employment and early childhood education.

• Strengthening public financial management and governance to improve service delivery and create a more enabling business environment, fostering private investment and economic inclusion.

• Facilitating global partnerships and knowledge exchange, with World Bank technical assistance helping Belize build capacity in climate adaptation, disaster risk management, and fiscal policy.

• Enhancing fiscal resilience and debt management, leveraging Belize’s new access to concessional financing through the International Development Association (IDA). This enables longer-term, low-interest loans critical for sustainable development and fiscal stability.

• Promoting climate resilience and disaster preparedness, addressing Belize’s vulnerability as one of the most disaster-prone countries globally, where natural disasters cost nearly 4% of GDP annually. Key initiatives include the Blue Cities project, which strengthens coastal and marine ecosystem management and reduces pollution, and the Catastrophe Deferred Drawdown Option (Cat DDO) to provide rapid liquidity in emergencies.

IFC’s Scaling Solar Program promotes private investment in solar power, while MIGA’s guarantees facilitate foreign direct investment.

Belize’s IDA membership marks a pivotal step, providing access to concessional resources and technical expertise vital to overcoming its unique development challenges and building a more resilient, inclusive economy.