Borrowing is not just growing around the world. Paying it back is becoming far more costly.
According to IIF data, advanced economies paid more than US$3.3 trillion in interest on government bonds over the past year. That is more than the world spends on defence (US$3.1 trillion), artificial intelligence (US$2.6 trillion) or clean energy.
For small, open economies like Belize, rising global debt and interest costs matter. Every dollar spent servicing debt is a dollar not spent on roads, schools, hospitals or relief for families.
Belize’s public debt stood at about BZ$4.65 billion in mid 2026, or around 65% to 66% of GDP. Because roughly two thirds of that is owed to foreign lenders, it must be repaid in foreign currency, putting pressure on the country’s reserves.
Belize has made progress. Its debt ratio has come down significantly from the levels seen after the pandemic, when it was among the highest in the world. Government also expects a primary surplus this year.
But new pressures are building. Government has committed $73 million to buy BEL preference shares, BEL says it needs another $20 million to pay Mexico’s CFE, and fuel prices remain high because of the Iran war. At the IMF and World Bank meetings, the PM called for contingency credit lines, catastrophe bonds and parametric insurance to help small states like Belize absorb shocks without piling on more debt.
With the world borrowing at a record pace, how Belize manages its own debt will be key to protecting its economy in the years ahead.
