So, overall, the economic picture is not encouraging. Add that to the fact that there are reports that Harvest Caye has laid off 300 people - in additional to Tropic Air's 220 last week - and you have a burgeoning crisis that's looking like a full blown economic depression.
Now, by February of this year, Belize had already recorded three successive quarters of economic contraction, amounting to a recession - and then came COVID….
So, with unemployment now in the thousands is Belize headed for a full blown economic depression? Now, by the textbook, a depression is defined as a recession that lasts three or more years - and we're surely not there yet.
But, with the rate of economic wastage, invoking the term doesn't seem that far off.
So are the circumstances lining up for Belize to be hit by an economic depression? Here's what one of the Statistical Institute of Belize's statisticians had to say during their quarterly press conference today, which was held via zoom video conference:
Jacqueline Sabal - Statistician II, SIB
"For us, I think the definition that is typically used is two consecutive periods, if I'm not mistaken, of decrease. For us at the Statistical Institute, it is not our job necessarily to decide whether the country is in a recession or not. I guess we leave that to those of the Central Bank. But I think that the definition that is widely used is 2 consecutive periods of decline, yeah, and at the moment, we're on our 4th."
Reporter
"What sort of economic performance does SIB consider to be a depression?"
Jacqueline Sabal
"An economic depression, I think this goes back to I guess the same question you asked earlier in terms of the consecutive periods of decline in growth. As I said, it is not in our purview to necessarily declare whether the country is in decline or depression. But, as I said, the internationally-used definition now would be those two consecutive periods."
The SIB today released its latest figures on the country's economic performance during the first quarter of 2020. It's an important snapshot because it provides insight into how the first weeks of the COVID-19 pandemic affected the economy.
We'll have an in-detailed of look at those numbers later on in the news.
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