President Ramotar reports to Parliament on state of economy:
Written by Adele Rampersaud
Sunday, 12 February 2012 21:38
ADDRESSING the official opening of the 10th Parliament, President Donald Ramotar emphasised the importance of continued prudence and good management of the economy.
“Without a doubt, our economy and country have come a far way from the time that our country was forced to enter an IMF agreement in 1989.
At that time, our country was a Heavily Indebted Poor Country (HIPC) where almost nothing worked,” the Guyanese leader told the House.
According to him, Guyana has now grown from a US$317 million economy in 1991 to a US$2.261 billion economy in 2010. The per capita income has moved from US$304 to US$2,533 in 2010.
In the same period, loans to the private sector increased from Gy$7 billion to Gy$112 billion, while interest rates tumbled from a height of 35% to now within a range of between 5% and 11%.
The Guyanese Head of State also reported that Guyana has succeeded in slashing the country’s external debt from US$2.1 billion to just above US$1 billion today. External reserves have grown from US$123 million to US$780 million, the highest it has ever been; while inflation has been sharply reduced to single digits for more than a decade.
“Guyana is now poised for a rapid take-off”, the President explained, but for this to be realised, the existing issues that can slow down the country must be tackled.
He pointed to the acquisition of cheap and clean power, which he believes is very important. According to Ramotar, cheaper, cleaner, and more reliable energy sources will encourage a stronger and more modern economy which will allow greater manufacturing, agro-processing and added value to the country’s minerals.
In the process, many well paying jobs will be created, and the fuel import bill would be slashed, thereby producing significant resources to enhance the efficiency of the productive sectors.
Maintaining and improving the productive sectors -- sugar, rice and bauxite -- is critical to development. Agriculture has a very important role in the future development of Guyana, the President said.
He further explained that with the UN’s declaration that the world’s population is growing rapidly, the world already has seven billion mouths to feed; and by the end of the first half of this century, another billion mouths will be added.
“Clearly, with the pressure on lands, food prices will rise, as is already happening,” he said.
With regard to mining, it will be extremely important to the rapid development of Guyana, and the two bauxite companies operating here are expected to increase production beginning from this year, the President reported to the House.
He expressed confidence that increased production would create new jobs for workers in the bauxite belt and in transportation as well.
A bauxite mine is expected to be constructed shortly.
Increased investments in gold mining is also employing growing numbers of workers currently.
“There is also high optimism that we are on the verge of discovering petroleum,” President Ramotar added. Some experts have listed Guyana as becoming the world’s major player in the sector. He said Guyana has to prepare for such eventuality and carefully plan for possibly serious negative effects on the traditional sectors.
In addition, he believes that “we must learn from the experiences of other countries which have passed through that stage already.”
Written by Adele Rampersaud
Sunday, 12 February 2012 21:38
ADDRESSING the official opening of the 10th Parliament, President Donald Ramotar emphasised the importance of continued prudence and good management of the economy.
“Without a doubt, our economy and country have come a far way from the time that our country was forced to enter an IMF agreement in 1989.
At that time, our country was a Heavily Indebted Poor Country (HIPC) where almost nothing worked,” the Guyanese leader told the House.
According to him, Guyana has now grown from a US$317 million economy in 1991 to a US$2.261 billion economy in 2010. The per capita income has moved from US$304 to US$2,533 in 2010.
In the same period, loans to the private sector increased from Gy$7 billion to Gy$112 billion, while interest rates tumbled from a height of 35% to now within a range of between 5% and 11%.
The Guyanese Head of State also reported that Guyana has succeeded in slashing the country’s external debt from US$2.1 billion to just above US$1 billion today. External reserves have grown from US$123 million to US$780 million, the highest it has ever been; while inflation has been sharply reduced to single digits for more than a decade.
“Guyana is now poised for a rapid take-off”, the President explained, but for this to be realised, the existing issues that can slow down the country must be tackled.
He pointed to the acquisition of cheap and clean power, which he believes is very important. According to Ramotar, cheaper, cleaner, and more reliable energy sources will encourage a stronger and more modern economy which will allow greater manufacturing, agro-processing and added value to the country’s minerals.
In the process, many well paying jobs will be created, and the fuel import bill would be slashed, thereby producing significant resources to enhance the efficiency of the productive sectors.
Maintaining and improving the productive sectors -- sugar, rice and bauxite -- is critical to development. Agriculture has a very important role in the future development of Guyana, the President said.
He further explained that with the UN’s declaration that the world’s population is growing rapidly, the world already has seven billion mouths to feed; and by the end of the first half of this century, another billion mouths will be added.
“Clearly, with the pressure on lands, food prices will rise, as is already happening,” he said.
With regard to mining, it will be extremely important to the rapid development of Guyana, and the two bauxite companies operating here are expected to increase production beginning from this year, the President reported to the House.
He expressed confidence that increased production would create new jobs for workers in the bauxite belt and in transportation as well.
A bauxite mine is expected to be constructed shortly.
Increased investments in gold mining is also employing growing numbers of workers currently.
“There is also high optimism that we are on the verge of discovering petroleum,” President Ramotar added. Some experts have listed Guyana as becoming the world’s major player in the sector. He said Guyana has to prepare for such eventuality and carefully plan for possibly serious negative effects on the traditional sectors.
In addition, he believes that “we must learn from the experiences of other countries which have passed through that stage already.”
