Guyana’s economy continues to receive kudos
Managing Director of Trinidad’s Republic Bank, David Dulal-Whiteway in an interview with the Trinidad Guardian on December 6, hailed Guyana’s performance for the year 2012, and said that the 6.6% growth in loans and advances portfolio that the company has seen is largely due to what has been going in Guyana.
In Guyana, there has been an 18% increase in loans and advances and Dulal-Whiteway said that, “the economy there is doing well. Guyana is one of the better performing economies in the region and because we have such a large market share there, we are really riding the wave of what’s happening in Guyana.”
According to the Dulal-Whiteway, this is first time in years that the bank has experienced this type of growth, since growth in this area has been negative or at best, even.
Only recently, Guyana’s economy was lauded by the International Monetary Fund (IMF) which projected a growth of 5.5% in 2013. IMF Executive Directors have commended Government’s policies which have supported the country’s macroeconomic resilience and sustained growth. Guyana’s banks remain liquid and prudential indicators have been strengthening.
Mr David Dulal-Whiteway, Managing Director, Republic Bank, Trinidad
The macroeconomic outlook for 2012 and the medium-term remain generally positive, the bank said. Real GDP is projected to grow by around 3.7 percent this year, roughly in line with what was envisaged in the 2012 budget (4.1 percent), but lower than the outturn in 2011 (5.4 percent). This expected outturn builds on strength in the gold, agriculture (rice) and services (construction and transportation) sectors, which should offset any expected falloff in sugar production.
The IMF also noted that following the general elections in November 2011, the political situation, though mostly stable, became more intricate, but investors’ interest continued to be strong, and confidence, generally positive.
Since 2006, because of prudent fiscal management, the economy has been showing its resilience, recording growth every year. By the middle of 2012, there was a 2.8% growth in real Gross Domestic Product (GDP).
“This growth reflects continued progress on the diversification of the productive sector where we have now arrived at a point where we are no longer as we were 10 years ago, entirely dependent on one, two or three dominant sectors,” Finance Minister Dr. Ashni Singh had said upon release of the report.
At that time, the three major contributors to the economy were rice, sugar and bauxite but, these are no longer occupying the dominant positions. While gold, other minerals, transport, ICT and construction are all showing increased importance, the three former sectors still contribute to a large portion of the economy.
Long- term commitments and investments made in Guyana will produce a tremendous impact on the local economy. Investments in bauxite, other minerals, oil, dry land rice and others that include expansion of current foreign investments point to improved confidence in the country’s investment climate.
Rice production is expected to exceed last year’s record -breaking 400,000 tonnes. Gold is headed for another record producing year with the 400,000 ounces target likely to be met as well. Sugar is on the road to recovery and bauxite is also performing well.
