Belize Economy Grows 1.4% in Second Quarter as Inflation Rises to 4.4%
BELIZE · ECONOMY
Key Facts
- —Growth Belize’s output rose 1.4% to BZ$1.388 billion (about US$694 million) in April to June 2026, the Statistical Institute of Belize (SIB) said on 30 September.
- —Inflation Consumer prices were 4.4% higher in August 2026 than a year earlier; the average for January to August was 2.9%, SIB said.
- —What grew Services rose 3.4%, led by wholesale and retail trade (+5.5%) and public administration (+5.9%), in the second quarter.
- —What shrank Farming, fishing and oil fell 6.1%, and construction and manufacturing together fell 6.4%, in the second quarter.
- —Fuel Diesel averaged BZ$15.02 a gallon (about US$7.51) in August 2026, up 26.9% in a year, SIB said.
The Belize economy kept growing in the second quarter on shops, services and cruise visitors, while fuel and power pushed prices up.
Belize’s economy grew 1.4% in the second quarter of 2026 compared with a year earlier, the Statistical Institute of Belize (SIB) said. Its 30 September release also showed consumer prices 4.4% higher in August than a year before.
A small economy tied to the dollar
Belize is a small country on the Caribbean coast of Central America, next to Mexico and Guatemala. Its dollar is fixed at two Belize dollars (BZ$) to one US dollar.
That fixed rate keeps the currency stable for foreign residents and investors. Prices quoted in Belize dollars convert to US dollars by halving them.
The SIB, the government’s statistics office, publishes growth, prices and trade figures in one monthly release. Its 30 September release covered all of them.
Services carried the second quarter
From April to June, Belize produced goods and services worth BZ$1.388 billion (about US$694 million). That was BZ$18.9 million (about US$9.5 million) more than a year earlier.
The services sector grew 3.4% to BZ$885.3 million (about US$443 million). Wholesale and retail trade rose 5.5%, and public administration rose 5.9% on higher government hiring and spending.
Hotels and restaurants grew only 1.1%. Cruise passengers rose 29% to 194,600 as ships made 13 more calls, but overnight visitors fell 1.2% to 131,400.
SIB statistician Christopher Hulse presented the figures, Love FM reported. Taxes on products, which count towards total output, rose 6.4% in the quarter.
Farms, factories and building sites slowed
Primary production, which covers farming, fishing and oil, fell 6.1% to BZ$116.7 million (about US$58 million). Banana output fell 15.3%, and citrus fell by almost two-thirds.
Livestock output dropped 14.1%, and oil extraction slipped 3.6%. Sugarcane was the bright spot, with deliveries up 4.4% after the industry controlled a fungus that hurt the 2025 crop.
Exports of shrimp, lobster meat and fish rose 33.6%. Industry, which includes construction and manufacturing, fell 6.4%, with construction down 4.7% and manufacturing down 9.9%.
Electricity generation rose 10.8%, reflecting higher demand from consumers, according to the SIB.
Two inflation numbers, one trend
Belize’s August inflation rate of 4.4% compares prices with August 2025. A second figure, 2.9%, is the average rise for January to August against the same months of 2025.
Both come from the same consumer price index. Annual inflation was 4.6% in June and 4.1% in July before the 4.4% reading for August, SIB releases show.
Over January to August, transport prices rose 7.0% and housing and utilities 2.8%. Food and soft drinks rose 2.2%.
Fuel and power drive living costs
Transport prices in August were 11.7% higher than a year earlier, the SIB said. Diesel rose from BZ$11.84 to BZ$15.02 a gallon, about US$5.92 to US$7.51.
Regular gasoline rose from BZ$11.82 to BZ$14.16 a gallon, about US$5.91 to US$7.08. Liquefied petroleum gas, widely used for cooking, rose 2.7% to BZ$133.58 per 100 pounds (about US$66.79).
Bus and taxi fares and international airfares also went up. Passenger transport services cost 15.2% more than a year earlier.
Housing, water and electricity costs rose 4.4%, driven by a higher electricity price per kilowatt-hour introduced at the start of 2026. Rents and water bills also climbed.
Sugar on store shelves rose 24.8% to BZ$1.05 a pound (about US$0.53). Insurance and financial services were the only category without a price increase.
Trade gap widens as imports grow
Imports in August reached BZ$295.1 million (about US$148 million), up 16.5% on a year earlier. Fuels, machinery and manufactured goods led the rise.
Domestic exports fell 4.9% to BZ$31.1 million (about US$16 million) in August. For January to August, exports were down 14.0%, while imports were up 15.8%.
Consumer confidence also dipped. The SIB index fell 0.4% to 42.4 in August, resuming a downward trend after a better July.
What it means for residents and investors
Second-quarter growth has slowed from 4.7% in 2024 and 1.7% in 2025. The full year 2025 grew 2.9%, the SIB said.
The growth figures are preliminary estimates, and the SIB can revise them in later releases. It has not said how much of the fuel increase reflects world oil prices rather than local taxes.
For foreign residents, the main change is the cost of living: fuel, transport and power bills have risen fastest. The SIB’s next release, with September prices, will show whether that pressure is easing.
More: Belize news, every day from The Rio Times.
Frequently Asked Questions
How fast is the Belize economy growing?
Belize’s output rose 1.4% in April to June 2026 compared with a year earlier, the Statistical Institute of Belize said. Services grew, while farming, construction and manufacturing shrank.
What is the inflation rate in Belize?
Consumer prices in August 2026 were 4.4% higher than in August 2025. The average rise for January to August 2026 was 2.9%, driven mainly by transport, housing and utilities, and food.
Why are prices rising in Belize?
Fuel is the main driver: diesel rose 26.9% and regular gasoline 19.8% in a year to August 2026. A higher electricity tariff, rents and some food items also added to costs.
Sources: Statistical Institute of Belize (release) · Statistical Institute of Belize (GDP Q2 2026) · Statistical Institute of Belize (CPI August 2026) · Love FM (growth) · Love FM (inflation)
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