The Statistical Institute of Belize’s preliminary third quarter Gross Domestic Product (GST) estimates showed that for the months of July to September 2020, the overall level of production for the country of Belize declined by 13.2% in comparison to the same three months in 2019. The total value of goods and services produced within the country for the period stood at $578.9 million, down $87.8 million from $666.7 million produced in the third quarter of 2019. According to the Statistical Institute of Belize (SIB), this decline was largely due to decreases within the tertiary sector, which continued to suffer from the negative effects of COVID-19.
With borders remaining closed during this period, only a marginal number of overnight arrivals was recorded, resulting in another steep decline in the ‘Hotels and Restaurants’ industry. Additionally, the ‘Wholesale and Retail Trade’ industry saw a considerable drop in activity, as evidenced by a reduction in goods imported into the country. A 20.7% contraction in ‘Taxes on Products’ also contributed to the overall decline in the GDP.
The services sector remains the most severely impacted by COVID-19, recording an 18.6% contraction in output during the third quarter. Production was down by $79.8 million, from $429.9 million during the third quarter of 2019 to $350.1 million during the same period in 2020. With borders closed during the quarter, activities within the ‘Hotels and Restaurants’ industry were virtually dormant, recording a significant 98.3% decline. Overnight visitors to the country were at a near standstill, while for the second consecutive quarter, there were no cruise visitors to the country. The ‘Wholesale and Retail Trade’ industry contracted by 21.4% during the quarter, as less ‘Mineral Fuels and Lubricants’, ‘Crude Materials’, ‘Personal Goods’, and ‘Machinery and Transport Equipment’ were imported into the country. Nationwide restrictions due to COVID-19 also interrupted land, sea, and air transportation, resulting in a 15.6% decline in the ‘Transport, Storage and Communication’ industry. Additionally, ‘Government Services’, which recorded growth during the first two quarters of the year, declined by 0.6%.
On the other hand, the primary sector grew by 18%, attributed to increases in the agricultural and fishing industries. Most of the major industries recording increased production compared to the third quarter of last year. Sugarcane farmers experienced an extended crop, as underdeveloped cane that could not be harvested earlier in the year was able to reach maturity. Production was also boosted by rainy weather during the third quarter of 2020, in contrast to the very dry conditions experienced in the same period of 2019. As a result, sugarcane deliveries rose from 81.5 thousand metric tons in the third quarter of 2019 to 193.2 thousand metric tons delivered in the third quarter of 2020. Citrus production grew substantially when compared to the third quarter of 2019, due to a late crop of oranges harvested during the period. Citrus fruit deliveries increased from a marginal 0.8 thousand metric tons in quarter three of 2019 to 18 thousand metric tons produced in quarter three of 2020. Improved weather conditions, coupled with an increase in acreage, also favorably affected banana production, which was up by 12.8% from 22.9 thousand metric tons in the third quarter of 2019 to 25.9 thousand metric tons in the third quarter of 2020. Livestock production declined by 8.1% over the period and poultry producers struggled to meet market demand as one of the major plants temporarily halted production due to COVID-19. As a result, poultry production dropped by 13.3% during the quarter. Nonetheless, cattle and pig production both recorded increases due to a rise in local demand and exported animals. Despite a significant decrease in lobster meat exports during the quarter, the fishing industry grew by 20.5% overall, boosted by a more than doubling of shrimp exports and a sizable increase in lobster tail exports. The secondary sector grew by 5.3% due to a rise in both the ‘Electricity and Water’ and ‘Construction’ industries. Sugar production was up by almost 60%, from 9.1 thousand metric tons in the third quarter of 2019 to 14.5 thousand metric tons produced in 2020, attributed to the rise in sugarcane deliveries. The ‘Electricity and Water’ industry also grew by a significant 24.3%, recovering from eight consecutive quarters of decline. While the third quarter of 2019 saw prolonged dry weather conditions, heavy rainfall during the third quarter of 2020 resulted in higher water levels at the dams and an increase in the supply of hydroelectric power. Consequently, electricity generation rose by 32.8%, from 74.8 thousand megawatt hours to 99.3 thousand megawatt hours. On the other hand, heavy rainfall had the opposite effect on water consumption, which decreased by 7.1% during the quarter, from 724.9 millions of gallons consumed in the third quarter of 2019 to 673.5 millions of gallons in the third quarter of 2020. Activities within the ‘Construction’ industry rose by 3.3%, as reflected by a 7.4% increase in building and construction loans.
