The Belizean economy, like the rest of the Caribbean, is certainly beset by a significant set of external demand shocks for our goods exports. Among the so-called “exogenous risk factors”, there’s the slowing down in the growth rate of emerging economies, particularly China and Latin American trading partners; there’s the decline in commodity prices; and of late there is now the dread of a potential shock wave caused by the Brexit vote in the United Kingdom.

To add to this already disheartening list, it is prudent to factor into the equation the potential fallout to tourism that could be triggered by the Zika virus, climate change, and natural disasters. While at the same time the ongoing “de-risking” phenomenon continues to threaten a potential halt to cross-border flows of finances. Several Caribbean countries, including Belize, enjoy positive net flows for remittances and services exports, but “de-risking” poses a clear-and-present danger to both. Continue reading →