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News from the Caribbean as of
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Guyana’s GDP to grow by 4.9pct in 2007, says finance minister
Monday, February 5, 2007
by Gordon French
Caribbean Net News Guyana Correspondent
Email: gordon@caribbeannetnews.com
GEORGETOWN, Guyana: Guyana’s Finance Minister Dr Ashni Singh presented a US$500 million budget to the National Assembly last Friday, which projected a 4.9 percent growth in the Gross Domestic Product (GDP).
The budget predicts a current revenue growth of 4 percent, fuelled by the anticipated stronger growth in sugar, the recovery in the mining and quarrying sector, as well as Guyana’s hosting of Cricket World Cup (CWC) and other major events to be held this year.
Dr Singh stated that the budget seeks to unlock the potential and entrepreneurial talent of Guyanese to achieve economic development while protecting and supporting the most vulnerable members of society.
“These investments are targeted at improving the quality of life of our citizens and further enhancing the physical and institutional infrastructure required to promote growth, the creation of wealth, and the generation of employment, all of which are inextricably bound to the reduction of poverty.”
The budget predicts that sugar production will meet 285,000 tonnes, an increase of 9.8 percent over 2005, and rice production 321,259 tonnes, representing a 4.6 percent increase from the previous year. The forestry sector is expected to remain strong, at 5 percent, while livestock production is projected to grow by 2 percent.
He said all of the major categories of exports are expected to contribute to this favourable performance, with the momentum being particularly strong in bauxite, rice and timber.
Guyana’s economy grew by 4.7 percent last year, with sugar production jumping by 5.5 percent. The engineering and construction sector grew by an estimated 12 percent, reflecting preparations for CWC, especially the construction of hotels, as well as the acceleration of the housing drive.
However, the mining and quarrying sector fell by 22.4 percent, with the bauxite industry suffering several setbacks, including low demand for RASC.
The inflation rate was 4.2 percent in 2006, lower than what was recorded in 2005, and lower than the target of 6.3 percent. Dr Singh said that higher oil prices, the significant impact of the floods in the early part of the year, and periodic shortages of key intermediate goods, such as cement, contributed to the inflation rate last year.
This year’s budget represents a 2.9 percent decrease over last year’s, primarily due to lower capital transfers to the Guyana Sugar Corporation (Guysuco) as a result of the advancement of the Skeldon Sugar Factory project.
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