By: Omar Silva, NP Staff Writer

Belize City, Wednesday, 29 March 2023 

In Belize, where over 90% of what is consumed or used for production is imported, inflation is causing significant challenges. The general increase in prices of goods and the steady decrease in the purchasing power of the currency is leading to societal collapse. The rate of inflation is becoming so high that prices are rising rapidly, causing a breakdown in the functioning of the economy. People are losing faith in the currency and beginning to hoard goods or seek alternative currencies, which is leading to hyperinflation and could ultimately result in a collapse of the economy.

The hyperinflation activity is disrupting the normal functioning of the economy, leading to uncertainty and unpredictability. Businesses are struggling to plan for the future and may no longer be able to make investments or take risks because of the unpredictability of prices. This can lead to a decline in economic activity and a contraction in the economy.

Furthermore, the rising inflation is causing silent uneasiness among citizens, investors and the business community and is a recipe for social unrest. People are becoming angry and frustrated with rising prices and decreasing purchasing power, which will eventually transform into a political issue that could lead to protests and other forms of civil unrest. This can destabilize society and lead to a breakdown in the rule of law.

In Belize, inflation is also causing political instability, and it is a headache for the party in government. The government will be blamed for the rise in prices and the economic disruption that follows, which can have political repercussions, especially with the upcoming political season. The issue of inflation is volatile and requires the government's full focus and attention. This issue is just one of many that the government is confronting, including the cost of education, health, housing, and many others in the social and economic development area.

Inflation has several negative effects on Belize's economy, which can lead to societal collapse. The government and central banks must take steps to control inflation and maintain economic stability to prevent these negative outcomes. Failure to do so could result in the collapse of the economy and harsh repercussions on society as a whole.