A small tropical country lying at the south of the Yucatán Peninsula in Central America. It is bounded by Guatemala to the west and the Caribbean Sea to the east.

Physical

Belize is mainly low-lying and covered with rainforest; only in the south does it rise to pine forest and savannah. It is near an earthquake belt and is occasionally subject to hurricanes.

Economy

Tourism is the principal source of foreign exchange and oil reserves have been exploited since their discovery in 2003 (although production peaked in 2011). Other industry is limited mainly to food processing and clothing, and the chief exports are processed sugar and other agricultural products, clothing, and crude oil.

History

The British settled Belize in the 17th century, proclaiming the area (as British Honduras) a crown colony in 1862. Subject to the jurisdiction of the governor of Jamaica, the colony sustained itself with little direct support from the British government. Grudging acceptance by its Latin American neighbours in the 19th century led to treaties recognizing its permanent boundaries. In 1964 the colony gained complete internal self-government. It adopted the name Belize in 1973, and in 1981 became an independent state within the Commonwealth of Nations. However, Guatemala continued its long-standing claim to the territory on the basis of old Spanish treaties. In 1991 Guatemala recognized Belize’s independence, the two countries having reached a provisional agreement on mutual fishing rights. In 1998 the country was devastated by Hurricane Mitch; and then by Hurricane Keith in 2000. In 2012 Belize defaulted on an interest payment on its public debt, which was restructured in 2013. For much of the last 30 years the conservative United Democratic Party has held power.