Diagnosing the Binding Constraints on Economic Growth (Belize)


Hausmann, R. & Klinger, B., 2010. Diagnosing the Binding Constraints on Economic Growth (Belize). In Towards a Sustainable and Efficient State: The Development Agenda of Belize. Washington, DC. Washington, DC: Inter-American Development Bank, pp. 11-35. Copy at http://www.tinyurl.com/hzghnfp
Diagnosing the Binding Constraints on Economic Growth (Belize)


Belize’s long-term growth performance has been comparatively good. It is not clear what comparator group is relevant, given Belize’s status as both a Caribbean and a Central American country. Compared with its Central American counterparts, Belize has been a growth star. In 1960, it was the second-poorest country in the region; now it is among the “top tier” countries, with gross domestic product (GDP) per capita (Figure 1.1) near that of Costa Rica and Panama. Moreover, much of this growth was achieved after independence. Among its Caribbean peers, however, Belize’s performance has been average, and it has not been able to close the gap with the better-performing economies in the region. And since 2004, economic growth has been sluggish, barely above the rate of population growth, implying that reactivating economic growth is a central development challenge for the country.

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Last updated on 01/25/2017