More news.
Economy Shrinks – Haada times ahead
Belize City, July 3, 2013
The latest figures released by the Statistical Institute of Belize indicate that the economy took a deep nose-dive between January and April this year, despite the Barrow Administration’s false propaganda that Belize is on a strong growth path.
Numbers and facts don’t lie and SIB’s conservative figures indicate that there was negative economic growth for the first quarter of the year. The economy contracted by 0.5%.
The contraction in the economy was due mostly to losses in production in the agriculture sector, a downturn in oil exports, struggling foreign investment, massive decline in business, and generally a slower economy.
Tougher times ahead
The NEGATIVE GROWTH for the first quarter of 2013 is troubling news, particularly since this period (January, February, March, April) is usually the strongest in terms of economic performance because of the Tourism season opening and the collection of tax revenues by the Government of Belize. It is when the Government sees a boost in revenues.
In 2009, when the 1 st quarter had seen a -1.2% contraction, the overall economy also regressed. What this means is that the people of Belize must brace for tougher times under the cold Barrow Administration. Following the shrinking of the economy in 2009, the Barrow Administration introduced a series of tax measures including a 25% increase on GST to fill the financial gap in their budget.
With little signs of the economy improving, and a UDP Cabinet that is lackluster and bankrupt of vision and ideas, the UDP will press the people harder with more taxation to make up for the looming financial shortfalls.
Running out of time
The Barrow Administration has apparently become afflicted with a crude oil revenue addiction that had temporarily eased the Government’s financial itch. Economic data shows that since 2006 (UDP took office in February 2008) the Government has earned $381.4 million.
But with declining oil production and no new oil discoveries, the Government seems to be running out of time before it runs the proverbial ship unto the reef.
International financial agencies, such as Moody’s Investors Services, have warned investors that the Barrow Administration could be falling into debt default very soon.
Teacher’s salary
A not-so-faded backdrop of the latest economic report are the Prime Minister’s promises that the teachers and public officers will get their salary adjustments. First, he strategically conjoined their request with his Government’s addiction, claiming that if oil is struck a portion of its revenues (Government’s portion at least) would be used to give them a pay raise. That hasn’t happened. Second, he launched a political gimmick called a “National Bank”, promising that it would offer cheap loans to teachers and public officers. That hasn’t happened either. Now the Prime Minister has moved the goal post and is saying that a portion of the revenues derived from the takeover of the International Business Companies (IBCs) registry would go to the teachers. We are still waiting.
At some point the teachers and public officers will hopefully recongnise that the Prime Minister is simply taking them for “cunu munu”. His promises are empty and are simply to buy time as he fishes around for more money for his Government to meet its budgetary needs.
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