Understanding Economic Reports: Belize External Trade, June 2020
Data Source: Statistical Institute of Belize, 2020
In order to prosper in society, business and everyday-life, people should understand the current economic status in which they operate. This post highlights the key information in Belize’s monthly External Trade Report, in the hopes that it will inform the decisions made going forward.
When comparing statistics between years, the exports of Belize have not been consistent per calendar month. This is mainly due to unpredictable exporting trends of Sugar. For example: in June 2020, Exports increased by 41.1% when compared to exports from June 2019. The Statistical Institute of Belize (SIB) disclosed that in June 2020, sugar was exported by bulk, which is highly profitable. Whereas in the same period of 2019, sugar was only exported as a bagged product. The variations in the exportation of sugar could also be due to external factors, such as drought, flooding, and pests along with the global pandemic.
In June 2020, Belize imports decreased by 38.4% when compared to June 2019 imports. In fact, since April 2020, the country has seen record low numbers for importation. These figures are a direct reflection of the impact of the COVID-19 pandemic on the economy. You might think that a large reduction in imports is a good thing because it means money is staying in the country. However, the sudden decrease in imports signals a bigger problem for Belize’s economy. Imports are not only used for consumption but to turnover profit. Imports are often utilized to invest in the products and services that local businesses sell, which then generate income from locals and foreigners. Therefore, lower imports indicate that locals are lacking income (likely due to the current unemployment rates in Belize) and that foreigners are not spending money in Belize, either. Not to mention, lower imports also signify lower government revenue from taxes and duties, which then has an impact on federal employees and operations.
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Moreover, the SIB revealed that all categories of imports decreased except the category of Food and Live Animals which increased by 11% from $15.5 million in June 2019 to June 2020. This is due to an increase in the importation of margarine, lard (shortening) and condensed milk. These specific imports are noteworthy because it reflects the current eating habits of our country. Without straying too far away from an economic review, it is important to highlight the negative health implications and conditions associated with consumption of these goods, most notably diabetes, obesity, and hypertension. In a time when 81,000 Belizeans applied for the COVID-19 Unemployment Relief Program, and many others have experienced pay-cuts, people cannot afford to develop long-term health issues. Similarly, the government cannot afford to have its citizens develop health issues that would last well beyond the pandemic.
This economic review on imports highlights the interconnected nature of our world, where the economy is reflective of and impacts our citizens’ health and well-being. In the months and years to come, it will be interesting to see the statistics on the increasing or decreasing expenditures on healthcare during and following the pandemic. I hope to be able to give a positive review of such data.
It is clear that the external trade reports for Belize provide further insights into the state of the country. I look forward to providing another economic review in the near future!
Written by: Alexya Vida Pérez