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Finance Minister outlines Government’s plans for Guyana realizing its full potential including diversification of its non-oil economy, investing in its people

-during meeting with British officials committed to partnering with Guyana

Georgetown, Ministry of Finance, November 28, 2022: Senior Finance Minister Dr. Ashni Singh today outlined Government’s plans including to utilize its oil revenue to diversify its non-oil economy into a globally competitive one and to invest in citizens to create a suitably equipped and skilled workforce in line with the current and future demand for new sets of skills. The Finance Minister was at the time holding discussions with Development Director for the Caribbean, Foreign, Commonwealth and Development Office and UK Director to the Caribbean Development Bank Malcolm Geere, and Economics Adviser, Team Leader, Inclusive Economic Growth, Caribbean, Foreign, Commonwealth and Development Office Liz Brower at the Ministry of Finance during an introductory meeting. The British Officials were led by British High Commissioner to Guyana Her Excellency Jane Miller.

Besides its introductory purpose, the meeting served as an opportunity for the British team to discuss with the Minister how the United Kingdom could partner with Guyana to increase mobilization of development support as Government continues to forge a number of international partnerships to catapult its current development agenda.

“Notwithstanding the commencement of oil production in Guyana and this illusion that there is windfall revenue, we still feel strongly about utilizing as much development support as we can,” Dr. Singh explained to the UK officials as he reminded that Guyana values its longstanding relationship with the UK.

The Senior Finance Minister explained that Government plans to ensure that revenues earned from oil currently being extracted will be used to lay the foundation for the future as he listed agriculture, transport infrastructure (for improved access to productive land and to improve access to continuous markets), energy infrastructure (to provide reliable and affordable energy as this would be important especially to facilitate a competitive manufacturing sector), physical infrastructure such as roads, bridges schools and hospitals, investing in people ensuring they are adequately equipped with the skills to meet new demands.

Dr. Singh also noted that Government intends to fully capitalize on its Low Carbon Development Strategy (LCDS) and will continue to manage Guyana’s tropical rainforest in a sustainable manner in order to be compensated by the world for its forest conservation and clean air contribution.

The Minister also touched briefly on Guyana’s Sovereign Wealth Fund which he reminded comprises part of the oil proceeds being put aside for future generations but added that along with this, Government wants to ensure the improved well-being of Guyanese such as allowing for them to have their own homes, are educated and have marketable skills and careers while the future generation will also be able to enjoy a modern, diversified economy where they can continue to thrive as well as be provided with modern health care once the country’s oil would have been exhausted in the future.

Guyana and the UK have been collaborating on a number of development projects with recently the UK Caribbean Infrastructure Fund providing US$66 Million toward the US$190Million Linden to Mabura road project. The two-lane highway between Linden and Mabura Hill forms part of the arterial link between Linden and the Lethem Highway and links Georgetown to the Brazilian border. Additionally, through the UK Export Finance (UKEF) the Government of Guyana is constructing a Pediatric and Maternal Hospital. The building and equipping of the state-of-the-art hospital will cost 149 Million pounds.

Meanwhile, Co-operation programmes/projects between Guyana and the UK also include the Diamond Diagnostic Centre, the Lethem hospital, the Leonora Cottage Hospital, the Mabaruma Hospital and the Paramakatoi Hospital.Through collaboration between the two countries as well, earlier this month Guyanese have been able to visit the UK visa-free. President Irfaan Ali had stressed as well during announcement of this waiver on visas, that the two Governments aim to further expand bilateral relations with the hope of furthering investments, including expansion of Guyana’s tourism market.

Finance Minister holds productive meeting with British Trade Mission

-in pursuit of deepening investment and trade relations between Guyana and Britain

Georgetown, Ministry of Finance, November 14, 2022: Senior Finance Minister Dr. Ashni Singh today participated in a Roundtable Meeting with the British Trade Mission to Guyana to further discuss how Guyana and the United Kingdom can forge closer ties. The meeting was held at the Marriott Hotel. The Mission was led by British High Commissioner to Guyana Her Excellency Jane Miller.

The British Trade Mission to Guyana is a partnership between the Department for International Trade of the British High Commission, the Caribbean Council and the Georgetown Chamber of Commerce and Industry (GCCI). Its aim is to increase growth in trade and investment between Britain and Guyana.

During the meeting Dr. Singh alluded to Guyana and the United Kingdom’s longstanding relationship grounded in diplomatic and political ties as well as economic ties through investment and trade, people and culture. It was pointed out that the British Trade Mission to Guyana presents an excellent opportunity for both Guyana and British companies to forge closer ties and look forward to the expansion of the British business presence and relations in Guyana.

The Minister indicated that as a result of its ramped-up oil-production, Guyana is now the fastest growing economy in the world, with growth of over 50 percent now forecasted for 2022 and medium-term average annual growth projected at 25 percent. He added that Guyana is considered as the premier investment destination in the world, attractive for investment in the oil and gas sector, infrastructure and requisite support services. There also exists avenues for investment and expansion in the non-oil extractives, such as gold, bauxite, agriculture, tourism and hospitality, ICT and energy. Dr. Singh also said that under President Ali’s One Guyana vision, Government is committed to leveraging the skills and investment potential of the Guyana Diaspora in the United Kingdom as it continues to implement its aggressive development agenda.

Guyana has recently collaborated with the UK Caribbean Infrastructure Fund with the latter providing US$66 Million toward the US$190Million Linden to Mabura road project. The two-lane highway between Linden and Mabura Hill forms part of the arterial link between Linden and the Lethem Highway and links Georgetown to the Brazilian border. Additionally, through the UK Export Finance (UKEF) the Government of Guyana is constructing a Pediatric and Maternal Hospital. The building and equipping of the state-of-the-art hospital will cost 149 Million pounds.

Meanwhile, Co-operation programmes/projects between Guyana and the UK also include the Diamond Diagnostic Centre, the Lethem hospital, the Leonora Cottage Hospital, the Mabaruma Hospital and the Paramakatoi Hospital. As of November 9 last, through collaboration between the two countries, Guyanese are now able to visit the UK visa-free. President Irfaan Ali had stressed as well during announcement of this waiver on visas, that the two Governments aim to further expand bilateral relations with the hope of furthering investments, including expansion of Guyana’s tourism market.

Finance Minister meets with President of CAF Development Bank of Latin America

-as Government continues to forge partnerships to catapult its development agenda

Georgetown, Ministry of Finance, November 14, 2022: Senior Finance Minister Dr. Ashni Singh today met with Executive President of the CAF (Corporacion Andina de Fomento) Development Bank of Latin America, Sergio Díaz-Granados and a team from the Bank, at the Ministry of Finance.

CAF is the development bank of Latin America and the Caribbean which promotes a sustainable development model and the integration of the Latin American and Caribbean (LAC) region through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.

During the meeting Minister Singh welcomed the Bank’s President to Guyana explaining that Government is open to partnerships with financial institutions such as CAF as it forges ahead on its development agenda. Discussions centered on how the financial institution can partner with Government to ensure its newly found oil and gas resources are steered toward boosting its economy and diversifying a number of critical sectors such as agriculture, tourism, social services and infrastructure. Government is also pushing its Low Carbon Development Strategy (LCDS), an area which the Bank expressed keen interest in pursuing.

Dr. Singh pointed out as well that the Bank's visit is a historic one and explained that Government would like to see the Bank play a role in Guyana in the exciting transformation underway in the country while the Bank’s President highlighted that the bank belongs to the Region and it would be a priority to increase its presence in the Caribbean and to assist its members in their development drives. He noted the Bank’s focus is on regional integration, stressing that CAF would like to increase its presence and expand operations across the Caribbean.

CAF was created in 1970. It comprises 21 countries, 17 of which are Latin American and the Caribbean. It also includes Spain and Portugal and 13 private banks in the region. CAF was originally established by five Andean member countries namely Bolivia, Colombia, Ecuador, Peru, and Venezuela. Its relationship with the Caribbean started in 1994 when Trinidad and Tobago (T&T) signed the agreement to become a Series “C” CAF following which Jamaica and the Dominican Republic became a Series “C” shareholder in 1999 and 2004, respectively.

 

Over $44 billion in Supplementary Funding sought in support of major developmental initiatives countrywide

Georgetown, Ministry of Finance, July 21, 2022: Supplementary funding to cater for a range of developmental initiatives countrywide including to provide additional resources for Amerindian and Hinterland Communities, Infrastructural Development in new and existing housing schemes and improvement and expansion of Coastal and Hinterland water supply among many other areas, were today sought when Senior Finance Minister Dr. Ashni Singh presented a Supplementary Appropriation Bill to the National Assembly during the 48th Sitting of the 12th Parliament.

The Supplementary Bill comprised Financial Paper Number 1 of 2022 totalling $44.8 billion which will see $21 Billion being spent in the Housing and Water sector for infrastructural development in new and existing housing schemes and improvement and expansion of coastal and hinterland water supply; $5.5 Billion for the Agriculture Sector for various provisions including additional resources for the Black Belly Sheep project and the provision of additional resources for drainage and irrigation interventions and support to the Sugar Industry; $307 Million for the education sector for the provision of additional resources to facilitate the purchase of school furniture consequent to the reopening of schools in the new COVID environment, the provision of additional resources to facilitate the construction of a primary school in Wakenaam.

Meanwhile, under the Ministry of Public works, $4.4 Billion was identified for various programmes under this sector including for the provision of additional resources to facilitate the upgrading of roads and drains in various communities, additional resources to facilitate the advancement of preliminary works to support the road linkage project, and resources to complete critical sea and river defence works.

Under the Ministry of Amerindian Affairs, over $3 Billion is catered for to provide for additional resources to support Amerindian and Hinterland Communities, while for the Ministry of Public Service, $250 million is provided for to allow for additional resources for the Guyana Online Academy of Learning (GOAL) scholarships and $700 million provided for public assistance to citizens living with permanent disabilities under the Ministry of Human Services and Social Security. The initiatives being provided for cover a range of sectors, as Government continues to make efforts to transform and improve the lives of Guyana’s citizens.

Gov’t, a committed partner in the cause of advancing renewable energy resources – says Finance Minister

– ‘Solar energy playing an important role in achieving energy inclusivity’

-30,000 off-the grid households to soon be electrified with solar through GOG/EXIM Bank project

Georgetown, Ministry of Finance, August 5, 2022: During his remarks at the Fourth Regional Committee Meeting for the Latin America and Caribbean Region of the International Solar Alliance (ISA) today held at the Arthur Chung Conference Centre (ACCC), Senior Finance Minister Dr. Ashni Singh pointed out that the Government remains strongly committed to advancing the national energy transition agenda including through promoting the use of renewable sources of energy, including solar energy. He said that solar energy is playing an important role in achieving energy inclusivity, particularly through the deployment of solar solutions in hinterland and remote communities.

The Minister reminded those at the meeting that Guyana has an off-the-grid population with these persons residing in hinterland and outlying areas. As such, he posited that ‘with the support of the Indian Exim (Export-Import) Bank, we have already concluded a project to procure and deploy 30,000 household solar units to bring solar electricity to 30,000 homes’.

Dr. Singh said further, ”Even though our energy transition might not comprise solar as the bulk producer to the grid, solar energy is playing a tremendous role in achieving energy inclusivity because even though it is at a small level, at the community level, from that one project, 30,000 households which did not have electricity will now have electricity. They were too far away from the grid to be able to connect but 30,000 households are now going to get electricity for the first time ever and similar solutions can be deployed for other remote areas.”

Minister Singh re-emphasized that Government is open to exploring various renewable energy resources and he also outlined its commitment and focus on ensuring that the administration achieves all of its goals in relation to its Low Carbon Development Strategy (LCDS) as contained in its Manifesto.

Key to Guyana’s Low Carbon Development agenda is clean energy. Government intends to utilize its access to low carbon development energy resources (Solar, Hydro, Wind, Biomass and Natural Gas) as a means of decoupling its economic growth from using fossil fuels for electricity. This will ensure that the rising demand is met and greenhouse gas emissions are kept low.

Minister Singh hands over essential supplies to Regional Health Department in Region Six under the auspices of BNTF

-reminds of Government’s commitment to ensure Guyanese receive quality health services throughout the Regions

Georgetown, Ministry of Finance, August 3, 2022: Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, while in Region Six today, handed over to the Regional Health Department a quantity of cleaning and sanitizing supplies to be distributed to various health institutions in the East Berbice/Corentyne Region. The Minister was visiting the Region to spearhead Government’s ‘Because We Care’ cash grant initiative at the J.C. Chandisingh Secondary School and stopped at the Health Department to hand over the essential supplies on behalf of the Basic Needs Trust Fund (BNTF), a sub agency of the Ministry of Finance which receives financial support from the Caribbean Development Bank (CDB). Prior to handing over the supplies, the Minister also took the opportunity to remind health officials that they all play an important role in ensuring that quality health care is provided to citizens.

Minister Singh alluded to the recent sod-turning ceremony on Saturday last for a new maternal and paediatric care hospital being constructed by Government and also emphasized to those in attendance that Government wants to ensure that all mothers, expectant mothers and newborn infants enjoy quality and modern health care. He added that Government is also committed to constructing six new modern Regional Hospitals with one to be constructed in Region Six, as well as more health centres countrywide including a new one soon to be completed at Fort Ordinance.

“In addition to this, recognizing the unique geography of Guyana, we want to make sure also that we deliver quality health care even to remote communities, including hinterland communities and small Amerindian village, and we are going to be developing four telemedicine centres so that we can use the expertise that is located at the major centres like Georgetown, New Amsterdam and elsewhere and deploy that expertise to the benefit of remote communities as well,” Dr. Singh explained.

‘Whatever job you do, you are providing a critical service to a large population base and you are providing that service to people at a time when they are most vulnerable,” the Senior Finance Minister concluded as he urged that health officials in the Region ensure that they deliver quality care to patients in a ‘sensitive, attentive and compassionate manner’ while Government will continue to ensure that they are provided with the infrastructure and all the essential health supplies to carry out this service.

In excess of $700 Million in grants to be disbursed in Region Six-Finance Minister says while spearheading ‘Because We Care” cash grant distribution at J.C. Chandisingh Secondary School

Georgetown, Ministry of Finance, August 3, 2022: As Government continued its second day of roll out of its ‘Because We Care’ cash grant today, Senior Finance Minister Dr. Ashni Singh while addressing parents and students at the J.C. Chandisingh Secondary School in Berbice, said Government will be expending in excess of $700 Million in cash grants to Region Six (East Berbice/Corentyne).

“I don’t want you to view this cash grant as an isolated initiative,” the Minister explained as he noted that it represents a much larger policy initiative being implemented by Government. We will ensure adequate access and we are building out enough infrastructure. I know that you have a high level of trained teachers already in Region Six. but you are not at 100 percent. Our objective is to achieve 100 % trained teacher status. Thirdly, we are committed to ensure that all schools are equipped to deliver quality education,” Dr. Singh added.

The Senior Finance Minister posited that Guyana is currently undergoing dramatic changes with its economy being among the fastest growing in the world. He also told parents that, as such, with all the opportunities being made available, their children face the brightest prospects over prior generations in the history of Guyana.

“Every parent wants their children to enjoy a life that is better than the life they(the parents) had. We all have an interest in ensuring that our children have a good education. It will not only have an impact on the children, but also your entire families, the community in which you live and the country as a whole,” Dr. Singh concluded.

The Finance Minister, during his visit to Region Six, was accompanied by Regional Chairman David Armogan and acting Regional Executive Officer, Mary Samaroo.

More than 23,000 students across East Berbice Corentyne are expected to receive the grant which started in New Amsterdam on Tuesday, on the Lower Corentyne today, and Upper Corentyne on Thursday. A total of over $719M is expected to be distributed in that Region.

Meanwhile, while in the Region, Minister Singh also visited the Port Mourant and Cropper Primary Schools where he checked on the status of the ‘Because We Care’ cash grant distribution and interacted with teachers and parents at those schools.

 

Finance Minister hands over more than $75M in equipment and materials to the Ministry of Agriculture under the auspices of GOG/CDB’s Basic Needs Trust Fund

-as Government moves aggressively to roll out President Ali’s agriculture and food security initiative

Georgetown, Ministry of Finance, July 27, 2022: During a simple hand-over ceremony in the Ministry of Agriculture’s Boardroom today, Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh handed over more than $75M in agricultural equipment and materials to the Ministry of Agriculture as part of President Irfaan Ali’s agriculture and food security initiative in Guyana and this country’s lead role in the sector in the CARICOM (Caribbean Community) Region.

The items handed over included shade mesh, plain wire, mist blowers, shade house plastic and mesh, knapsack sprayers, water pumps, fertilizers, garden hoses, cutlass files, spades, brush cutters, wheel barrows, gloves, shovels, water cans as well as over 12,500 coconut seedlings and 20,200 fruits and ground provision seedlings. These are expected to be distributed to farmers in various regions across the country.

While handing over the materials and equipment Minister Singh pointed out that the distribution of the items countrywide, which will ultimately be done by the Agriculture Ministry, forms part of the much larger initiative that Government is rolling out to address the advancement of agriculture and food security and which is being led by President Ali, supported by Minister of Agriculture, Zulfikar Mustapha.

“It would be recalled that upon President Ali’s assumption of office in August 2020, Guyana very shortly thereafter resumed our role as holding the agriculture portfolio in the CARICOM /Quasi Cabinet arrangement, meaning that we are now the lead country on agriculture and food security matters, and President Ali has been advancing this Caribbean agenda for food security in a very aggressive way… to the extent in fact that coming out of the recent Summit of the Americas, where a special committee was established,” Dr. Singh explained. He noted too that the items also represent a significant contribution as part of the initiative of the United States /CARICOM committee which was established to address food security.

“Guyana has been identified in fact to Co-Chair the committee that is addressing food security and the Foreign Secretary is Co-Chairing the committee -The US/CARICOM Food security committee. But apart from the discussions and the work that we are doing to address food security at a macro level, at the national, regional and international level, agriculture and food production go to the core of the well-being of our communities,” the Finance Minister reiterated reminding those at the ceremony that agriculture has historically been the mainstay of Guyana’s economy with tens of thousands of families deriving their economic livelihood from the sector.

Receiving the items on behalf of his Ministry, Minister of Agriculture Zulfikar Mustapha thanked Dr. Singh and the Ministry of Finance as well as the Basic Needs Trust Fund for bringing into the Ministry of Agriculture the much valuable equipment and materials.

“This will help us to implement the programmes that the Government is rolling out throughout the country and is testimony to the government’s commitment,” Minister Mustapha underscored.

The Caribbean Development Bank’s (CDB) Basic Needs Trust Fund (BNTF) programme is one of its key instruments for addressing poverty reduction in the Caribbean region. The programme provides access to basic public services through the provision of social and economic infrastructure and the development of skills to enhance employability, community management and engagement. The programme targets the reduced incidence of economic and social vulnerability among the poorest populations in participating countries.

The BNTF programme in Guyana is jointly funded by the Caribbean Development Bank (CDB) and the Government of Guyana. BNTF’s Implementing Agency (IA) Guyana began receiving Country Project grants from the Caribbean Development Bank’s Third Programme (BNTF 3) in 1993 and has continued to benefit. For approximately twenty-seven years, the BNTF IA, a Project under the Ministry of Finance, has been implementing projects across the length and breadth of Guyana. The main objective was, and still is, to contribute to poverty-reduction in targeted communities by implementing infrastructure and human capacity development projects. From its inception to date, BNTF Guyana has implemented 612 sub- projects. An estimated 52,283 persons directly benefitted from the projects delivered including 22,355 men and 31,079 women.

The BNTF in Guyana in recent times has made significant contributions to the Agriculture Sector with investments in excess of 380 million dollars. Some of its projects include:

(1) The Guyana School of Agriculture’s Agro-processing and Training Facility in Region 2, which when operationalized, will expose students to the requirements of commercial food processing operations and the techniques required for the development of new products and demonstrating to students, food processing as a viable business.
(2) Construction and equipping of a modern agro-processing and packaging facility at NAREI. The facility will be equipped with a pulp processing and tea line, to support value-added agricultural production. Training was also provided to 100 farmers and 20 extension officers in good agricultural practices and post harvesting techniques.
(3) A small scaled poultry facility within the Matarkai sub-region. The facility will not only help to meet the local poultry demands but also provide jobs for people in the community.

Under the BNTF, 31 shade houses have been constructed in partnership with community farming groups, NGOs and schools in regions 1,2,3,4,5,6,9 and 10. Training was also provided with support from partners IICA and NAREI.

APNU/AFC treated public servants callously-says Finance Minister

Georgetown, Ministry of Finance, July 21, 2022: Finance Minister Dr. Ashni Singh yesterday during the 48 the Sitting of the 12 the Parliament lambasted the A Partnership for National Unity/Alliance for Change (APNU/AFC) for that party’s treatment of public servants during its term in office as he added that while pretending to care for public servants through a motion moved in Parliament seeking support for them, the Opposition Party already knew that there was no ‘policy’ which causes new entrants into the public service to be paid three months after they would have been employed, but rather, the issue usually resulted due to various bureaucratic processes fully well known by the party and which it was unable to resolve itself for the benefit of hard working public servants, between the period 2015-2020, despite its meek attempts. Dr. Singh added that the party was therefore being hypocritical since during its five years while in government (between 2015- 2020) public servants were treated extremely callously.

Highlighting his point, Dr. Singh noted that it was in December, 2019 that APNU/AFC’s Tabitha Sarabo Halley while Minister of the Public Service at the time issued a circular on the very same matter.

“Indeed in 2019…. the Public Service Ministry under the Ministerial tenure of Ms. Tabitha Sarabo Halley issued circular Number 2 of 2019 and that circular reads as follows (mind you four years after they entered office): “There is seemingly some misinformation concerning the practice of the payment of salaries to new entrants into the public service which is being relayed could only be done within a 3 months period. Please be advised that there is no such practice or rule hence, the practice and misinformation must cease forthwith…..”. The Minister indicated following his reading out of the entire circular that the circular clearly indicated that the then Government knew what the problem was and the Minister added that given the employment process involving typically advertisements, applications etc. and the process to formalize their employment, Government Orders being issued etc. and partly as a result of various bureaucracies, the process becomes a more protracted one for appointees, especially if persons turn out to work before the employment contract and appointment letter have been issued. On that note, the Finance Minister posited that it is the PPP/C’s position that persons must be paid as soon as possible after they receive their appointment instrument and/or their contract.

But the Senior Finance Minister not only alluded to the issue of the APNU/AFC not resolving the same issues they were bringing to Parliament, but he also pointed to other actions of that party which demonstrated their treatment of public servants, such as the forcing of thousands of public servants, including professional medical doctors, to move from the contract gratuity system to the pensionable establishment.

“They claim that they love public servants and they champion their cause….’you think the public servants don’t know or they have forgotten that you compelled thousands of them to give up their contract gratuity status and to move to permanent establishment status?” Minister Singh asked the Opposition Members as he addressed the National Assembly. “Do you know the effect that had?’ That had the effect of reducing those people’s emoluments by 22.5 percent,” Dr. Singh said.

“Many of these public servants were members of the Disciplined Services-Policemen and women, soldiers, firemen, they took away the one-month bonus from them….under the People’s Progressive Civic Government they used to get a one-month bonus ” Dr. Singh further reminded the National Assembly.

The finance minister then continued that many public servants who worked beyond the call of duty were told by the APNU/AFC Government that they should either take their leave or lose it and consequently, public servants who were already over stretched and hardworking were willing to forego their leave to get work done since the APNU/AFC Government told them that they would not be paid their salary in lieu of leave.

 

 

Guyana’s overall real GDP grew by 36.4% in the first half of the year, with non-oil growth of 8.3% – according to the Mid-Year Report 2022   

Georgetown, Ministry of Finance, September 3, 2022: According to the Ministry of Finance’s recently released Mid-Year Report 2022, Guyana recorded an overall real Gross Domestic Product (GDP) growth of 36.4 percent in the first half of the year, with the non-oil economy growing by 8.3 percent, reflecting Government’s supportive policy stance. The outlook for the second half continues to be favourable. For the full year, real GDP growth in 2022 is now projected at 56 percent overall, and non-oil GDP growth at 9.6 percent, maintaining Guyana’s position of global leader in economic growth.    

“Led by President Ali and fueled by the rapid economic growth, we have embarked on a period of rapid transformation, and our Government has laid out a masterplan for the rapid development and transformation of Guyana. More importantly, we have demonstrated the capacity and commitment to working assiduously to make this vision a reality so that benefits can redound to citizens in the shortest possible time,” Dr. Singh had indicated.

Senior Finance Minister Dr. Ashni Singh had noted that upon the assumption to office by the President Irfaan Ali-led Government, the administration recognised the importance of a strong, diversified economic base and, as such, even in the early days of oil production, placed the highest level of importance on a resilient non-oil economy. The aim, therefore, was to modernise the economy’s traditional pillars and catalyze ‘a rapidly growing and highly competitive non-oil economy. This is evident in the nation’s non-oil economic growth at the end of the first half. The continued growth projected for 2022 builds on the 4.6 percent growth recorded last year.

The key macroeconomic highlights are as follows:

SECTORAL PERFORMANCE

Agriculture, Forestry and Fishing 

The agriculture, forestry and fishing sector is estimated to have expanded by 10.9 percent in the first six months of 2022, driven by higher output from the other crops, forestry and livestock, notwithstanding weaker performances in the sugar, rice and fishing industries. The sector is now expected to grow by 11.9 percent.

Extractive Industries

The mining and quarrying sector is estimated to have grown by 64.6 percent in the first half of the year, with a revised 2022 forecast of 99.9 percent driven by growth in the petroleum and other mining industries.

The petroleum sector expanded by an estimated 73.5 percent, with 34.6 million barrels of oil produced in the first half of the year. This was the result of the commencement of oil production at the Liza Unity FPSO in February. Also on the upside, the bauxite industry is estimated to have grown by 31.9 percent, and the other mining and quarrying (sand, stone, diamonds, manganese) industries by 36.3 percent, in the first half of 2022.

Manufacturing, Services and Construction

The service industries are estimated to have expanded by 7.6 percent, driven largely by increases in wholesale and retail trade, and transport and storage. The overall 2022 growth rate for the services sector is now forecasted to be 6.3 percent. While the manufacturing sector is estimated to have contracted by 11.4 percent in the first half of the year, it is now projected to grow by 7.5 percent for 2022.

The construction sector is estimated to have grown by a strong 20.4 percent in the first half of 2022, reflecting intensified activity in both the public and private sector.

BALANCE OF PAYMENTS

The overall balance of payments recorded a US$100 million deficit at the end of the first half of 2022, reflecting primarily higher cost of fuel and capital imports.

With respect to trade, export receipts expanded by US$2,330.2 million, outweighing the US$506.6 million increase in imports. Notably, these receipts grew largely as a result of higher export earnings from oil, while, at the same time, non-oil export earnings increased marginally by 2 percent.

MONETARY DEVELOPMENTS

Consistent with the expansion in the non-oil productive sector, credit to the private sector rose by 7.5 percent to $308.3 billion.

This primarily reflects expanding credit to the services sector, manufacturing sector, for real estate mortgage loans, and to households. These increased by 8.2 percent, 26.7 percent, 3.2 percent, and 5.1 percent, to $110.3 billion, $34.2 billion, $98.6 billion, and $38.5 billion, respectively.

PRICES

The Russian invasion of Ukraine has exacerbated supply disruptions to commodity markets, resulting in surging commodity prices, the effects of which are being felt globally. Guyana has not been spared. Consumer prices were 4.9 percent higher than levels recorded at the end of 2021 and this was due largely to higher food and energy prices.

Recognising the consequences of these inflationary pressures, Government implemented a suite of measures to ease the burden on the population. The excise tax on petroleum was reduced from 20 percent to 10 percent at the time of Budget 2022 presentation, and reduced even further from 10 percent to zero in March. Additionally, Government also utilised $1 billion for the purchase and distribution of fertilizer to farmers across the country, $800 million to provide cash grants to households in hinterland and riverain communities, among a number of other interventions.

Given the existing geopolitical tensions globally, inflation is now projected to be 5.8 percent for 2022.

NATURAL RESOURCE FUND

During the first six months of the year, Government had five lifts of profit oil from the two producing FPSOs. Further, Government received US$307 million in revenue from their share of profit oil, along with royalties to the tune of US$37.1 million, in the first half. The cumulative balance on the NRF, inclusive of interest income, was US$753.3 million, after withdrawing US$200 million in May.

Government anticipates 13 lifts of profit oil for 2022, and subject to the evolution of world market oil prices, now projects US$1.1 billion from the sale of the country’s share of profit oil, and US$147.7 million in royalties.

In just over 24 months of this Government’s current term in office, implemented policies and programmes have already laid a solid foundation for realising the commitments made in the 2020 Manifesto, on the basis of which this Government was elected to office. Government remains steadfast in its efforts to continue to grow the economy and improve the wellbeing of all Guyanese, thereby building a modern and prosperous One Guyana.

To view the entire Mid-Year Report 2022, click here: https://finance.gov.gy/wp-content/uploads/2022/09/Mid-Year-Report-2022-FINAL-compressed.pdf