The COVID-19 pandemic severely impacted the economy in 2020. Tourism activity collapsed in March under the weight of stringent travel restrictions and containment measures designed to curb the spread of the virus. Agriculture was already suffering from a drought in 2019. Public revenues fell dramatically, leading to an increasing deficit and debt rising above 100% of gross domestic product (GDP). Job losses, increased unemployment, and the tragic loss of lives were some of the devastating human and social costs of the pandemic.

Unlocking growth remains a challenge. Prospects for 2021 remain uncertain, depending significantly on the speed and effectiveness of vaccination against COVID-19 in Belize and its trading partners. The new Government has very limited fiscal space to fund development, and will need to prioritise effectively, with possible help from development partners.