Guyana projects a 4.5% growth in the economy this year

The Government of Guyana is predicting a 4.5 percent growth of the local economy after recording a 4 percent increase for the first 6 months of the year.

“We expect 4.5 percent growth at the end of this year, but of course everything has an if and a but and you know there are downside risks that can challenge us getting there, one of which is the challenging political environment that has been there since December 2018. In a sense it accelerated because since 2015, we have been operating in a challenging environment,’ Finance Minister Winston Jordan said as he presented the 2019 mid-year economic report.

Jordon told reporters that the improved performance was fueled by growth in a number of sectors such as rice, forestry, gold, manufacturing, construction, wholesale and retail trade, and financial and insurance activities.

He acknowledged that the economy could have been performing much better had it not been for the problems with the bauxite industry and the current weather conditions which have impacted the agricultural and mining sectors.

“Investments by both businesses and households continue to trend upward, evidenced by a 5.7 percent increase in private sector credit. That was driven by significant increases in real estate mortgages as well as loans to business enterprises and individuals,” the report notes.

The finance minister brushed aside complaints from the Private Sector Commission (PSC) and the Georgetown Chamber of Commerce (GCC) about a “slow down” in the economy as a result of the ongoing political situation in the Caribbean Community (CARICOM) country.

“Until people bring credible evidence, which is the Bank of Guyana report or the IMF report or ECLAC, or something showing that there is a downturn, then there will just be statements, and as far as I am concerned, they are irresponsible statements. Every meeting with the private sector, I said bring me the evidence, but that is where it ends, I don’t get it,” he added.

Jordan said that the political situation, including threats to review deals, has posed a setback in the sale of several of the financially troubled Guyana Sugar Corporation (GUYSUCO) estates.

The main Opposition People’s Progressive Party (PPP), which has been calling for fresh regional and general elections by September 18, following the successful passage of the vote of no confidence against the David Granger Government last December, has promised to reopen the estates and provide employment to thousands of workers who have been displaced as a result of the restructuring exercise.

The Trinidad & Tobago-based Caribbean Court of Justice (CCJ) last month labelled the present administration as a “caretaker” government pending the outcome of the elections and Jordon said there will be no budget presentation until after the polls.

But he said the Government will activate the provision that allows it to spend one-twelfth of the previous year’s budget if there are no elections when the budget expires at the end of December. -(CMC)