Wednesday, September 12, 2012

BELIZE 2013 GDP ECONOMICS !

MAINLAND CHINA IS FORECASTED TO DROP FROM 8% GDP TO 5% GDP THIS COMING YEAR.

  CHINA IS RE-ORIENTATING THEIR ECONOMY FROM BEING AN EXPORT DRIVEN GDP MAKER, TO A DOMESTIC GDP SITUATION.  APPARENTLY THIS MEANS THEY WILL BE SPENDING MORE MONEY NOW ON BUILDING INFRA-STRUCTURE.  I WAS TRYING TO RELATE THAT TO THE ECONOMIC SITUATION IN BELIZE, THAT DOES NOT HAVE ANY POLICIES, EITHER FOR EXPORT DRIVEN GDP, OR DOMESTIC GDP, BEING TOO SMALL.  CAN'T SAY I FULLY UNDERSTAND THE DIFFERENT RAMIFICATIONS OF EITHER POLICY IN CHINA, OR HOW TO DO SOMETHING SIMILAR IN BELIZE AS SMALL AS IT IS.

  FAR AS THIS EX-FISHERMAN, BOAT BUILDER CAN FIGURE; IS THAT OUR GDP IS EXPORT DRIVEN, IN AGRICULTURE AND INCOME FROM TOURISM AND A DECLINING OIL BOOM.  WHILE WE DON'T HAVE ANY DOMESTIC GDP FUNCTION TO SPEAK OF.  SUCH INFRA-STRUCTURE PROJECTS, ARE DONE BY BORROWING FOREIGN LOANS AND OR GRANTS.  THE GRANTS WOULD BE GENUINE GDP FIGURES AS DOMESTIC GDP.  THE LOAN BORROWING WOULD BE GDP WHEN SPENT AT THE TIME, BUT BE NEGATIVE GDP WHEN PAYBACK WAS REQUIRED.  WE WOULD BASICALLY BE TAKING TWO STEPS FORWARD, BUT ONE STEP BACKWARD, BY USING LOAN BASED GDP CHANGES IN OUR ECONOMY.

 BE INTERESTING TO HEAR COMPARISONS AND STATISTICS ON HOW THE GOVERNMENT BUREAUCRATS ARE THINKING IN THESE TERMS?  THE PRIVATE SECTOR IN BELIZE, HAS BEEN DENIED QUARTERLY GOVERNMENT SPENDING AND EARNINGS REPORTS, SO THERE IS NO REAL WAY FOR THE PRIVATE SECTOR TO FIGURE OUT HOW TO INVEST IN THE COUNTRY LONGER TERM.

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