Guyana's economy registers 5.9 % growth
Written by Demerara Waves
Thursday, 01 September 2011 22:10
Source
Guyana's economy has achieved real economic growth of 5.9 percent in the first half of 2011, despite poor performances in the fisheries, forestry and transporation, the state-run Government Information Agency (GINA) reported.
The latest economic update is contained the fifth mid-year report presented by the Finance Ministry to the National Assembly on Thursday.
This growth is a continuation of the robust performance of recent years and, in particular, building on its previous achievement of five consecutive years of positive growth since 2006.
Underlying this overall expansion in real gross domestic product in the first half was growth in the non-sugar sectors of five percent, while the sugar sector also contributed to the overall acceleration in growth.
The report stated that, “as a result of this performance, and given updated outlooks for the various productive sectors, the economy is now projected to grow by 5.1 percent in 2011 with non-sugar growth projected at 3.4 percent, an upward revision from the original projections of 4.6 percent and 2.8 percent respectively at the time of Budget 2011.”
Government remains committed to maintaining macroeconomic stability and the maintenance of momentum in its transformational efforts, notwithstanding an often hostile global environment, is testimony to the economic resilience achieved as a result of a disciplined policy stance and sustained implementation of a sound and responsible policy framework.
Sugar – tentative signs of recovery
In the first half this year, the sugar industry showed tentative signs that the path to recovery has commenced. The sector returned a 2011 first crop of 106,871 tonnes, reflecting a 30.5 percent increase over the first crop of 2010 and the best first crop performance since 2004. The sector’s projected growth for the full year remains unrevised at 35.3 percent.
Rice- highest first crop in industry’s history
The rice industry continued its successes of recent years into the first half of 2011, coming off a remarkable production performance in 2010. The 2011 first crop rice production at 207,514 tonnes was 23.3 percent higher than the corresponding period in 2010 and the highest first crop in the industry’s history.
This growth in production was attributed mainly to significantly improved drainage and irrigation as a result of government investments, the development of a new and more tolerant rice strain by the Guyana Rice Development Board, higher yields and, most importantly, a higher acreage of paddy planted.
Other Crops- grew by 3%
The other crops sector continues to benefit from Government’s Agricultural Diversification Programme and the Grow More Food Campaign and at the end of the first half the industry recorded a three percent growth rate. Weather conditions are expected to be more favourable after July, which would augur well for production, and there is no revision to the projection of two percent growth.
Livestock- growth projection revised upward
Production in the livestock industry was targeted to remain stable through 2011. However, for the first half of the year overall production levels actually increased by 2.7 percent, with increased production evident in areas of poultry meat, table eggs, mutton and beef while pork production declined. As a result there is a now a higher expectation of the eventual annual output and the original growth projection has been revised upwards to 0.6 percent.
Bauxite- production on the increase
Production of bauxite reached a total of 815,505 tonnes at the half year, an increase of 38.6 percent compared to the same period in 2010. The composition of the industry’s output, a higher proportion of lower grade to higher grade product, converts into a sub-sector growth of 13.8 percent. With this production mix expected to continue during the second half, the expected growth rate for value added in the bauxite industry is now projected at 13.4 percent.
Gold- growth revised upward
Total gold production in the first half of 2011 was 163,413 ounces, an increase of 14.9 percent over 2010. With gold prices hovering firmly above US$1,500 per ounce and approaching US$1,800 per ounce in the post mid-year period, there is every incentive to invest and operate in the industry.
Gold production for the year is now projected to reach 320,000 ounces, resulting in an upward revision in the industry’s projected growth from 2.9 percent to 3.7 percent.
Manufacturing- growth by 10.6%
The manufacturing sector grew by 10.6 percent at the half year, driven largely by the manufacturing component in sugar and rice production, but with other manufacturing also estimated to have grown by 2.3 percent. The annual growth target for the sector has been revised upwards from the budgeted 7.7 percent to a now expected 9.4 percent.
Electricity and Water- grew by 2.6%
With the continued investments by Government, the electricity and water sector has grown by 2.6 percent for the comparative half-year and with investments in these services expected to be a continued priority, the annual growth rate has been revised upwards from 0.4 percent to 2 percent.
Construction- expanded by 4%
Engineering and construction activity expanded by 4.0 percent in the first half of 2011. Imports of building materials and construction-related public investment continued to reflect strong growth. The sector is now targeting a growth of 5.5 percent.
Information Communication Technology- continuous expansion
The information and communication sector which has been recognised as an important emerging industry complements economic activity in all sectors and continues to expand throughout the country. The sector is estimated to have grown by 5.5 percent in the first half and as a consequence the initial budget projection for the year of 5 percent is retained.
Finance and Insurance- grew by 16%
The finance and insurance industry, estimates at the end of the first half indicate that the industry recorded a growth rate of 16 percent, with much of this driven by expansion in activity by the commercial banks. The industry is therefore projected to grow by 5.3 percent, somewhat higher than the original projection of 4 percent.
Social Sectors- positive growth
Education and health and social services which have a growing private sector component recorded estimated growth of three and 3.4 percent respectively for the first half. As a result their budget growth projections have been revised to 1.5 percent and 1.9 percent, respectively.
Fisheries- downward trend seen
The fisheries industry was targeted to grow just marginally by 0.4 percent over the production performance of 2010. However, during the first half of the year, the industry recorded a downward trend, with negative growth of 2.2 percent. A contributory factor in the reduced production was higher prices for fuel, a critical input in the industry. The industry is now projected to contract by 4.7 percent in the full year.
Forestry- negative growth
In the forestry sector, during the first half of 2011, production of logs, lumber and roundwood all contracted, resulting in an overall negative growth in the industry of 30.3 percent.Notwithstanding the resumed production of plywood manufacturing operations, sustained international demand for several of Guyana’s traditional species now boosted by the penetration of Guyana’s lesser used species into the international market, and attendant improvement in international market prices, the sector is now projected to contract by 19.9 percent by yearend compared to an earlier projected contraction of 1.4 percent.
Transportation- declined by 6.5%
In the transportation and storage sector, there were significant interruptions of road transport during the first half on account of severe weather especially between the coastland and the hinterland, particularly Region Nine. This resulted in the sector suffering an estimated declined by 6.5 percent in the first half, and overall projected performance for the year being revised downwards from 3.9 percent to 3.7 percent.
Written by Demerara Waves
Thursday, 01 September 2011 22:10
Source
Guyana's economy has achieved real economic growth of 5.9 percent in the first half of 2011, despite poor performances in the fisheries, forestry and transporation, the state-run Government Information Agency (GINA) reported.The latest economic update is contained the fifth mid-year report presented by the Finance Ministry to the National Assembly on Thursday.
This growth is a continuation of the robust performance of recent years and, in particular, building on its previous achievement of five consecutive years of positive growth since 2006.
Underlying this overall expansion in real gross domestic product in the first half was growth in the non-sugar sectors of five percent, while the sugar sector also contributed to the overall acceleration in growth.
The report stated that, “as a result of this performance, and given updated outlooks for the various productive sectors, the economy is now projected to grow by 5.1 percent in 2011 with non-sugar growth projected at 3.4 percent, an upward revision from the original projections of 4.6 percent and 2.8 percent respectively at the time of Budget 2011.”
Government remains committed to maintaining macroeconomic stability and the maintenance of momentum in its transformational efforts, notwithstanding an often hostile global environment, is testimony to the economic resilience achieved as a result of a disciplined policy stance and sustained implementation of a sound and responsible policy framework.
Sugar – tentative signs of recovery
In the first half this year, the sugar industry showed tentative signs that the path to recovery has commenced. The sector returned a 2011 first crop of 106,871 tonnes, reflecting a 30.5 percent increase over the first crop of 2010 and the best first crop performance since 2004. The sector’s projected growth for the full year remains unrevised at 35.3 percent.
Rice- highest first crop in industry’s history
The rice industry continued its successes of recent years into the first half of 2011, coming off a remarkable production performance in 2010. The 2011 first crop rice production at 207,514 tonnes was 23.3 percent higher than the corresponding period in 2010 and the highest first crop in the industry’s history.
This growth in production was attributed mainly to significantly improved drainage and irrigation as a result of government investments, the development of a new and more tolerant rice strain by the Guyana Rice Development Board, higher yields and, most importantly, a higher acreage of paddy planted.
Other Crops- grew by 3%
The other crops sector continues to benefit from Government’s Agricultural Diversification Programme and the Grow More Food Campaign and at the end of the first half the industry recorded a three percent growth rate. Weather conditions are expected to be more favourable after July, which would augur well for production, and there is no revision to the projection of two percent growth.
Livestock- growth projection revised upward
Production in the livestock industry was targeted to remain stable through 2011. However, for the first half of the year overall production levels actually increased by 2.7 percent, with increased production evident in areas of poultry meat, table eggs, mutton and beef while pork production declined. As a result there is a now a higher expectation of the eventual annual output and the original growth projection has been revised upwards to 0.6 percent.
Bauxite- production on the increase
Production of bauxite reached a total of 815,505 tonnes at the half year, an increase of 38.6 percent compared to the same period in 2010. The composition of the industry’s output, a higher proportion of lower grade to higher grade product, converts into a sub-sector growth of 13.8 percent. With this production mix expected to continue during the second half, the expected growth rate for value added in the bauxite industry is now projected at 13.4 percent.
Gold- growth revised upward
Total gold production in the first half of 2011 was 163,413 ounces, an increase of 14.9 percent over 2010. With gold prices hovering firmly above US$1,500 per ounce and approaching US$1,800 per ounce in the post mid-year period, there is every incentive to invest and operate in the industry.
Gold production for the year is now projected to reach 320,000 ounces, resulting in an upward revision in the industry’s projected growth from 2.9 percent to 3.7 percent.
Manufacturing- growth by 10.6%
The manufacturing sector grew by 10.6 percent at the half year, driven largely by the manufacturing component in sugar and rice production, but with other manufacturing also estimated to have grown by 2.3 percent. The annual growth target for the sector has been revised upwards from the budgeted 7.7 percent to a now expected 9.4 percent.
Electricity and Water- grew by 2.6%
With the continued investments by Government, the electricity and water sector has grown by 2.6 percent for the comparative half-year and with investments in these services expected to be a continued priority, the annual growth rate has been revised upwards from 0.4 percent to 2 percent.
Construction- expanded by 4%
Engineering and construction activity expanded by 4.0 percent in the first half of 2011. Imports of building materials and construction-related public investment continued to reflect strong growth. The sector is now targeting a growth of 5.5 percent.
Information Communication Technology- continuous expansion
The information and communication sector which has been recognised as an important emerging industry complements economic activity in all sectors and continues to expand throughout the country. The sector is estimated to have grown by 5.5 percent in the first half and as a consequence the initial budget projection for the year of 5 percent is retained.
Finance and Insurance- grew by 16%
The finance and insurance industry, estimates at the end of the first half indicate that the industry recorded a growth rate of 16 percent, with much of this driven by expansion in activity by the commercial banks. The industry is therefore projected to grow by 5.3 percent, somewhat higher than the original projection of 4 percent.
Social Sectors- positive growth
Education and health and social services which have a growing private sector component recorded estimated growth of three and 3.4 percent respectively for the first half. As a result their budget growth projections have been revised to 1.5 percent and 1.9 percent, respectively.
Fisheries- downward trend seen
The fisheries industry was targeted to grow just marginally by 0.4 percent over the production performance of 2010. However, during the first half of the year, the industry recorded a downward trend, with negative growth of 2.2 percent. A contributory factor in the reduced production was higher prices for fuel, a critical input in the industry. The industry is now projected to contract by 4.7 percent in the full year.
Forestry- negative growth
In the forestry sector, during the first half of 2011, production of logs, lumber and roundwood all contracted, resulting in an overall negative growth in the industry of 30.3 percent.Notwithstanding the resumed production of plywood manufacturing operations, sustained international demand for several of Guyana’s traditional species now boosted by the penetration of Guyana’s lesser used species into the international market, and attendant improvement in international market prices, the sector is now projected to contract by 19.9 percent by yearend compared to an earlier projected contraction of 1.4 percent.
Transportation- declined by 6.5%
In the transportation and storage sector, there were significant interruptions of road transport during the first half on account of severe weather especially between the coastland and the hinterland, particularly Region Nine. This resulted in the sector suffering an estimated declined by 6.5 percent in the first half, and overall projected performance for the year being revised downwards from 3.9 percent to 3.7 percent.