Remittances and Household Income in Belize: Examining Impacts on Consumption and Savings under Changing Flows and Taxation

Remittances form an essential component of the household income of Belize, which helps to finance consumption and savings during periods of economic uncertainty driven by the country's tourism and agricultural sectors. This research, based on data provided by the World Bank and IDB, attempts to analyse the trends of remittances between 2016 and 2025, where it increases from US$105 million to US$173 million (5.2% of GDP in 2025), with 84.1% of the total amount received from the US. Households that receive remittances have 17.7% higher incomes than non-receiving households. This is further supported by charts and equations that demonstrate that continuous flows increase aggregate demand. However, taxes may affect the multipliers' effect on demand (1.5 to 2.0). Recommendations: Incentives for digital remittance transfers and savings schemes. Findings: The significance of remittance in Belizean economic resilience is highlighted in the findings. Abbreviations: GDP – Gross Domestic Product, MPC – Marginal Propensity to Consume, IDB – Inter-American Development Bank, UB – University of Belize