IMF Sees Robust Economic Growth In Belize

by Mike Godfrey, Tax-News.com, Washington

09 May 2005

Following a recent meeting with the Belize Business Bureau's executive committee, the International Monetary Fund described the country's economy as robust, despite the repeated strikes by public utility workers and subsequent civil unrest.

After "frank and friendly" discussions with various business and governmental bodies including the Belize Chamber of Commerce and Industry, the Central Bank and the Ministry of Finance, the IMF concluded that the country's economic growth rate has increased by 50%.

However, the fund urged the government to keep the deficit level in check and accelerate the pace of tax reforms, which have not kept pace with growth.

The IMF also recommended that Belize implement antitrust legislation.

The IMF warned that social harmony was essential if the country was not to reverse its economic progress.

During a complex international dispute over ownership of national telecommunications company BTL, workers recently went on strike and sabotaged phone lines, cutting the country off from the rest of the world. The opposition United Democratic Party called for civil disobedience, stirring up a hornet’s nest of discontent amongst a populace already angry over plans to raise tax in order to pay down the country’s mounting levels of debt.

Commenting on the IMF visit, Home Affairs Minister Ralph Fonseca, agreed that the country must work to restore the political and economic stability which have attracted foreign investors to Belize.

"We cannot afford to fall back," he declared.

"We must work to repair the damage to our economy caused by the irresponsible acts--which should be termed as uncivil disobedience--that Belize has experienced over the past two weeks. We have worked too hard to be weakened by those whose single agenda is without respect for the importance of stability to any marketplace.”

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