Guyana’s balance of payment for 2010, the overall report of the country’s economic transaction with the rest of the world, reflected an overall surplus of US$90.1 million.
This disclosure was made by Finance Minister Dr Ashni Singh during the presentation of the 2011 Budget in the National Assembly on Monday, where he also reported on the expansion in export earnings for the year.
“Export earnings expanded by 16.1 per cent to US$891.9 million, reflecting both volume and price increases in the case of most commodities,” Minister Singh said. Export proceeds from gold reflected a 26.7 per cent increase, as gold prices rose by 23 per cent to US$346.4, while the bauxite sector generated US$114.6 million in export receipts, increasing by 78.5 per cent.
A 28.9 per cent increase in rice exports to 336,313 tonnes, coupled with a 5.1 per cent increase in average export price, was the main factor leading to rice export earnings expanding by 35.5 per cent in 2010.
On the other hand, export receipts from sugar suffered a 13.2 per cent decline to US$104 million, on account of a 9.8 per cent decline in the average export price and lower export volume.
Reporting on the capital account, Minister Singh said foreign direct investment increased by 20.7 per cent to US$198 million. “Largely on account of the increased foreign direct investment, and notwithstanding the non-recurring nature of the allocation of US$108.6 million of Special Drawing Rights by the IMF in 2009, the capital account registered a surplus of US$325.8 million compared with US$454 million in 2009,” minister Singh said.
The Bank of Guyana increased its external reserves position to US$780 million at the end of 2010, exceeding last year’s record level of reserves.
Minister Singh said this achievement came as a result of the overall balance of payments surplus. Net current transfer, the excess of transfers from abroad received by Guyanese, expanded by 23.7 percent to US$370.8 million, with remittances officially increasing by 40.3 per cent to US$367.8 million.
