The IMF has finished its Article Four consultation with Belize, and have issued a farily favourable report. They say, quote, "Belize's economic recovery is strengthening, the government is making significant progress toward debt reduction, and the Central Bank of Belize has taken resolute actions to improve financial soundness."
But, the fund warns, "public debt is elevated, the external current account deficit remains large, and international reserves are just above 3 months of imports of goods and services." furthermore, the bank states that there are substantial risks, including quote, "Contested legacy claims, estimated at about 5 percent of GDP, (which) could lead to large public and external financing needs."
On the growth side, the bank says "Belize's outlook of rising growth, especially in the agriculture, call-center, and tourism sectors, provides an opportunity to make progress on policies that will strengthen the recovery in the short term and raise long-term growth, without significant fiscal costs."
The fund advises that government should work at Reducing government debt to below 60 percent of GDP in 10 years…and again suggests that "Revenue measures could include further broadening the base of the GST by phasing out zero-rated items and exemptions; modernizing and further reinforcing the efficiency of tax administration; increasing the GST rate to the regional average over the medium term; and more closely monitoring activity in Commercial Free Zones."
Government has repeatedly rejected this suggestion.
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