Despite the continued harsh international environment, which has seen several developed and developing countries being hard hit by low and negative growth and near recessionary conditions, Finance Minister Dr Ashni Singh said, the Guyanese economy performed well in the first half of 2011.
Dr Singh explained that all of the preliminary results indicate that the economy and several of its traditional and non-traditional sectors have recorded marked improvements in overall performance so far. Stopping short of announcing any half-year statistics, Minister Singh stated that he was using the preliminary indications and data available to him, as the ministry could not yet make any official announcements to confirm the half-year performance of the economy, since “compilation, assessment, and analysis” of the data are still ongoing.
“We have just started to receive end-June data and it’s a little too early to make any quantified announcement, as it’s too soon after the reporting period; but I would say that all preliminary signs are indicating that the economy performed well in the first half of the year,” a cautious Singh disclosed.
He stated that the initial reports received from the gold, sugar, rice and bauxite sectors all point to significant improvements in output and revenue for the first half-year mark. Citing the sugar sector first, Dr Singh stated: “Sugar performed relatively well during the first crop this year when compared with last year, as Guyana Sugar Corporation (GuySuCo) produced more than 106,000 tonnes of sugar compared with a mere 82,000 tonnes of the commodity in the first half of 2010 We are cognisant and well aware of the challenges and issues which continue to plague the sugar sector, but there has been marked improvement already, even if the orginally anticipated first crop target was not met”, Dr Singh informed. The finance minister related that rice also continued to perform exceptionally well when compared to the stats from the first half of 2010.
Minister Singh spoke positively about the output and performance of the gold sector, as he noted that the price of gold remains relatively strong, with an ounce being sold at just about US$1,500 dollars. He also cited improvements in the traditional bauxite sector, which he said was showing “encouraging signs”. “Not only are the preliminary data showing good performances in the traditional sectors so far, but in the new and emerging non- traditional areas as well”, Dr Singh stated.
He also suggested that all of these preliminary signs and findings will have an effect on the overall aggregate performance of the economy when all the statistics have been compiled.
He seemed to hint that Guyana is well on its way towards a sterling economic performance this year, as he declared that “the news is relatively positive”. Last year, Guyana’s gross domestic product (GDP) growth rate was estimated at 3.6 per cent, and nominal GDP was estimated at Gy$453 billion.
These figures reflect the rebased gross domestic product compiled by the Bureau of Statistics with external assistance and support. The growth rate achieved in 2010 represented the fifth consecutive year of positive growth, with the Guyanese economy recording uninterrupted positive growth every year after the 2005 floods.
Earlier this year, Minister Singh presented a Gy$161 billion National Budget for 2011 in the National Assembly. That budget projected continued positive growth in 2011, with real GDP projected to expand by 4.6 per cent this year.
