The Statistical Institute of Belize is reporting that the economy declined by 8.4 per cent or $60.4 million during the first quarter of 2021.

The value of goods and services produced within Belize totalled $660 million coming from the $720.4 million worth of goods and services produced during the same period of 2020. This is the fourth consecutive quarter in which the nation has experienced significant economic contraction as a result of the COVID-19 pandemic.

Service activities continued to be the hardest hit with production in this sector falling by 12.3 per cent. This was mainly due to the sharp reduction in tourist visitors to the country compared to the first quarter of last year, despite the re-opening of the international airport in late 2020.

The Statistical Institute of Belize reports that the primary sector decreased by two per cent, as some major agricultural industries saw decreased outputs during the quarter. Nonetheless, the secondary sector grew by 4.3 per cent, attributable mainly to a rise in electricity production.

Primary activities

Production within the primary sector totalled $76.8 million during the first quarter of 2021, down two per cent or $1.6 million from $78.4 million during the same period in 2020. Within the ‘Agriculture, Hunting and Forestry’ sector, extended rainy conditions contributed to a 16.9 per cent decrease in banana output, from 26.2 thousand metric tons during the first quarter of 2020 to 21.8 thousand metric tons in the first quarter of 2021.

Citrus fruit production declined by 41.3 per cent, from 59,700 metric tons harvested in the first quarter of 2020 to 35,000 metric tons in the first quarter of 2021. This reflected the combined effects of citrus greening, which continued to affect the more mature trees and the late crop that was harvested last year.

Notwithstanding an overall decline within the agricultural sector, the sugarcane industry showed signs of rebounding from the effects of the extended dry conditions that devastated production in 2020. More favorable weather conditions for crop health and growth along with on-time crop maintenance resulted in deliveries totaling 760.6 thousand metric tons of sugarcane during the first quarter of 2021.

This was an increase of 26.2 per cent over the 602,900 metric tons produced in the first quarter of last year.

Secondary activities

The secondary sector was the only one to experience growth during the first quarter. Production within secondary industries increased by 4.3 per cent overall, from $99.4 million in the first quarter of last year to $103.7 million in the first quarter of this year.

The ‘Electricity and Water’ industry grew by 24.5 per cent, due entirely to increased electricity generation, as higher water levels at the Chalillo dam resulted in a rise in hydroelectricity production from 53,200 megawatt-hours in the first quarter of 2020 to 71,600 megawatt-hours in the first quarter of 2021. Water consumption, on the other hand, decreased by 7.5 per cent, due to the higher rainfall levels and an increase in the number of disconnections made during the period.

Construction activities also grew by 15.7 per cent, as reflected by an increase in loans for building and construction coupled with a rise in cement imports. The manufacturing and mining industry decreased by 9.8 per cent during the period.

Beverage production continued to suffer from the lack of tourist visitors to the country and the restrictions placed on restaurants and bars, although not as severely as in previous quarters. Soft drink production recorded a slight decrease of 0.8 per cent from 1,721 thousand gallons to 1,706.5 thousand gallons.

Beer production rose by a marginal 0.2 per cent, boosted by the introduction of an additional local brand of beer into the Belizean market in January of this year. A total of 711.1 thousand gallons of beer were produced in the first quarter of 2021, compared to 709.6 thousand gallons in the first quarter of 2020.

The sugar industry experienced a 28.3 per cent rise in output, with a total of 71,000 metric tons of sugar being produced in the first quarter of 2021, compared to 55,300 metric tons of sugar during the first quarter of 2020.

Citrus concentrate production, in contrast, dropped by almost a half from 1,194.4 thousand gallons to 663.6 thousand gallons, as fruit deliveries declined during the period. Among the country’s other manufactured goods, flour production fell by 10 per cent while crude petroleum extraction was down 35.5 per cent compared to the first quarter of last year.