Has Inflation Increased the Poverty Rate?

We asked Dr. Martinez, against the backdrop of the cost of living going up and the poverty rate that has likely increased, whether there is a disconnect between government’s commendable economic growth and individual families’ economic circumstances. This was how he responded.

Dr. Osmond Martinez

Dr. Osmond Martinez, C.E.O., Ministry of Economic Development

“When we look at inflation in general, yes, that’s an elephant in the house, but it’s not only in Belize. It’s a global problem that we have. First it was because of the pandemic COVID-19 and right after, when we think we are moving forward, here comes the invasion of Russia on Ukraine – the war that has created a huge amount of problems not only to Belize but in the global market, and one of the problems that we have in Belize is that we are importers so we import inflation as well. The poverty rate in 2018 was already and fifty-two percent, and throughout the whole world there has been an increase in poverty because of the pandemic. So, I won’t be surprised if we see an increase in poverty in Belize for the new census, however, that is where we need to double up. We need to continue to work. The government is doing as much as possible. Remember there was another problem that the government had and that was the ten percent salary cut. An announcement has gone out where the government is saying “We will give back the ten percent salary cut to the public officers and teachers as of July first.” Now, in the middle of the pandemic, the government has done a lot, but because of all these issues – you would really have to have an open mind and understand – however, you are feeling the pinch as well and we do acknowledge that.”