Guyana’s economy records 5.2 % growth in 2013

GUYANA’S economy in 2013 performed well, recording 5.2 % growth, despite a year underlined by parliamentary difficulties surrounding cuts to the national budget, and a global economy that had begun to emerge from the doldrums of its worst economic crisis. This year, the economy is projected to grow by 5.6 %.Before a packed National Assembly, that included many senior public sector functionaries, the nation’s largest annual finance statement, $220B, under the theme, By All Guyanese A Better Guyana For All Guyanese, was unveiled by Minister of Finance Dr. Ashni Singh on Monday.
Reporting on the state of the international economy, the following significant positives were noted: there was stronger demand in the advanced economies, coupled with increase in exports in emerging economies; and, a world economy growing by 3% in 2013.
But despite this challenging economic landscape, the local economy recorded its eighth consecutive year of economic growth for 2013, with the following sector growth performances also noted for the same period:
*Rice production recorded a historic level of 535,439 tonnes, or 26.9 % increase over 2012 output.

*Livestock performed at an output of 4.3% increase.

*Gold yielded declarations at an all-time high of 481,087 ounces, or 9% above production figure for 2012.

*Diamonds declared an increase of 56.9%

*Stone reflected a level of 47.8%, due to the four-fold increase in the construction industry.

*Forestry advanced its production growth by 5% for a total production of 398,964 cubic metres.

*Mining and quarrying recorded an 8 % growth increase over 2012.
*Manufacturing increased by 8%, largely due to a 5.4 % growth in rice production.

* Service industries progressed by 5.5%, mainly influenced by the housing drive and a booming construction sector that recorded a 22% growth, in addition to public sector project implementation.

*Information Technology recorded an increase level of 9 %.

* Water and electricity – 5.6%

*Transport and storage – 4%

* Finance and Insurance – 11.2%.

*Rental of dwellings-5.6 %

*The social sector activities of public administration, education and health showed an increase of 2.5%, 3.5%, and 4% respectively.
However, the following sectors did not fulfill expectations: sugar; fisheries – due to overfishing and matters surrounding the issuance of fishing licences, as well as a reduction in trawler fishing; wholesale and retail trade, because of reduction in consumption imports.
Other notable performances for 2013 included an expanded net domestic credit by 25.2% to $123.9B; a 14% increase of credit to the private sector; a reduction of the external debt by 8.3%; an inflation rate level of 0.9; and gross international reserves of US$776.9M.

Projections for 2014:

* Growth of the national economy by 5.6%

* Inflation rate of 5%

* 15.6% sugar production output of 215,910 tonnes
* Increase of 1% in rice production, or 540,793 tonnes

*livestock growth by 3.3%, with forestry pegged at 3.3%

*fishing is expected to return an increase a 2.2%

*Gold is targeted at just 0.7% or 484,562ounces, because of the uncertainty of world market prices

*Bauxite is expected to grow by 11.5%, and manufacturing by 7.1%

Other projections are – the services sector growth is pegged at 6%; construction, 7.5%; rental dwellings,9%; wholesale and retail, 4.5%; transportation and storage, 8.4%; information and communication technology, 4.2%; banking, 11.8%; electricity, 7.2%; and health , education, and other services by 4%, 3.85 and 7.6% respectively.
There will be a deficit of US$21.9M in 2014, in comparison to US$119.5M in 2013; an increase in revenue by 10.3% or $149.6B; an increase in expenditure by 25.4% or $215.9B – occasioned by a $31 billion in capital works executed on pivotal projects such as the Cheddi Jagan International Airport (CJIA) expansion, and also environmental and rural enterprise programmes; and, an increase of 10.6 % or $128.3B in respect of non-interest capital expenditure.
Finally, for public enterprises, the target deficit is $2.1B or 0.3% of Gross Domestic Product (GDP). The deficit of the non-financial sector is scheduled at $34.6B or 5.2% of GDP.

(GINA)