GDP Growth Surges With Strong Sugar Showing, and A Citrus Rebound
In May, we told you about the negative growth of GDP in the first quarter of the year. That's after the GDP for the 2013-2104 fiscal year came in at just 1.5%, less than the projected 2.5%. So, for a while now, GDP growth has been lackluster. But, the news tonight is that thanks for a strong performance by sugar and a rebounding citrus industry, the second quarter of 2014 has shown the strongest growth of any quarter in memory. The Statistical Institute of Belize released the figures at a press conference today and Jules Vasquez reports:…
Second quarter GDP growth was impressive, 8.7% – much stronger than any second quarter in recent times or memory – and much better than last year's measly 1.8% during the same period. Pushing that growth is performance in what's called the primary sector, mainly agriculture and forest and mainly Sugar which saw an 80% increase in the second quarter. This chart shows how strong the spike was in sugar – while Citrus – the purple line - had fair growth and bananas in green was a virtual flatline.Sugar also pushed up the manufacturing sector, and so did greater production of beer and rum.
Jefte Ochaeta, Statistician I
"Where we saw beer increasing it's production by 13.2 percent, and rum by 74.4 percent. The main reason is that in Belize we are enjoying our liquor. There is a high demand for it even though the export of rum has increased substantially by 7 percent."
A strong showing in the tourism sector also fueled growth in the second quarter where Belize's growth was twice that of the United States and 7 times that of Mexico.The consumer price index, or inflation for July was also a regional standout –it was the lowest in Central America and some of the Caribbean.
Jefte Ochaeta
"Jamaica continues to have the highest inflation in the region and Belize is showing the lowest inflation at 1.3 percent and closest to us is El Salvador with 1.8 percent. Mexico has increased their inflation to 4.1 percent and the United States to 2.0 percent."
Prices went up in some areas,but major food products were down and so were fruits. This chart shows that meat prices were up – same for red kidney beans. Inflation was lowest in the Belize district, highest in San Ignacio.
Jefte Ochaeta
"San Ignacio has been the one showing the highest inflation at 2.5 percent. The main reason is that in San Ignacio we observe the highest inflation in the rent at 4.9 percent."
For the first 7 months of the year, overall imports were up by 68 million, and exports down – but imports in the Corozal Free Zone were down sharply again.
Javan Chavarria, Statistician II
"The reason for the large increase in the machine and transport category was because of an increase import of motor vehicles for the transport of goods."
We note that the Statistical Institute of Belize currently does not currently have a director general Glen Avilez moved on. It's next press conference will be in November.
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