What type of economy does Belize have?

Updated time: 02 Jun, 2022, 15:57 (UTC+08:00)

Belize is a country located in Central America, neighboring Mexico to the North. Belize’s economy type is developing free-market, with a mixed economic system including a private-enterprise system, combined with centralized economic planning and government regulation. Tourism, agriculture, energy and services are dominant economic sectors here.

Belize economic system

Belize's economy is small, with GDP averaging US$2.5 billion in 2021. The judiciary lacks resources but is generally independent.

However, Belize economic system is characterized by progressive development strategies, a business-friendly environment, and an abiding democratic stability. The Belizean government is fully committed to supporting the country's well-geared economic growth strategy while retaining its character and promoting investment opportunities. The Belizean government continues to grant a number of investment-related incentives in order to maintain Belize's business-friendly image.

Belize economic system is characterized by progressive development strategies, a business-friendly environment, and an abiding democratic stability

In 2020, due to COVID-19, Belize economic growth was $1.76B, a 11.04% decline from 2019. Even though the pandemic has had a negative impact on global trade, Belize has made remarkable progress. However, in the last three months of 2021, Belize's main import and export value remained over 303 million USD and 50 million USD, respectively. Belize ranks third in the Caribbean in terms of return on foreign direct investment (FDI) at 9%, according to the Economic Commission for Latin America and the Caribbean (ECLAC).

Belize has signed preferential trade agreements. There are two formal non-tariff measures in place, and the trade-weighted average tariff rate is 17.2%. Belize economic system does not discriminate against foreign investment in general, however particular industries are restricted. Belize is a member of the Caribbean Community (CARICOM).

Belize’s main economic sectors

Belize agriculture

Belize agriculture is being utilized on a small percentage of total land. The majority of farms are under 100 acres (40 hectares), and many are milpas (temporary forest clearings). Sugarcane, citrus fruits, and bananas are among the crops grown on the surviving farms or plantations for export. Agriculture is a development priority for Belize economic growth, contributing about 20% of the country's overall GDP, as well as 25% of the country's workforce.

Belize tourism economy

As the Belize tourism economy grew significantly in the 1990s, the number of visitors surged fivefold from the late 1990s to the mid-2000s, making it a key source of foreign money. Belize tourism economy supports about half of the labor force and the economy. The Belize Barrier Reef is popular for fishing, boating, swimming, and diving. Caracol, Xunantunich, El Pilar, and Cahal Pech are among the country's many Mayan ruins that are major tourist destinations.

The Belize Barrier Reef

Belize trade

Citrus, sugar, and bananas are Belize's main exports. Belize's trade deficit has been increasing, owing to low sugar and banana export prices. Belize's main imports are Refined Petroleum, Rolled Tobacco, Recreational Boats, Passenger and Cargo Ships, and Ethers. Belize's main import partners are the United States, Mexico, China, Guatemala, and Japan.

Belize’s offshore company benefits

Foreign investors can take advantage of Belize’s offshore company benefits and incentives. As a foreign investor, they can register their businesses as International Business Companies (IBC). A Belizean IBC is a business entity capable of performing international financial transactions. Foreign investors can also use IBC to conduct businesses in asset protection, operating bank accounts, brokerage accounts, ship ownership, and commission arrangements.

Features of Belizean IBC include:

Progressive legislation: The IBC Act was passed in 1990 to apply competitive legislation and provide more Belize’s offshore company benefits.

Efficient incorporation: Under normal circumstances, setting up offshore companies in Belize is very quick and simple, and can be done in 2 working days.

Flexible company structure

No requirement for a secretary, resident or otherwise
100% foreign owned
Only one director or shareholder required
Shareholder(s) and director(s) can be the same person
The shareholder(s) and director(s) can be an individual or a corporate body

Privacy of personal information: The name or identity of any shareholder or director is not shown in Belize IBC Incorporation’s documents and in any public record.

Favorable taxation: Belize offshore companies are exempt from all taxes under the IBC Act of 1990.

Take advantage of Belize’s offshore company benefits with One IBC

Now that you have a grasp of what type of economy Belize has, you can consider opening your first offshore company here. With a quick and simple incorporation procedure, setting up offshore companies as foreigners will guarantee to bring abundant benefits to your business.

If you still need more support, you can check out One IBC’s Belize company formation service. All you need to do is provide basic information about your company, and we will do the rest. Your Belize company will be ready in a day or two.

In addition to the above-mentioned economic benefits from this nation, One IBC will assist you with: