Guyana records significant economic growth during first half of 2021
DESPITE the challenges of the novel coronavirus pandemic and the devastating floods experienced in May-june, Guyana’s economy grew by 14.5 per cent during the first six months of this year, according to the mid-year report released by the Ministry of Finance.
Earlier this year, Senior Minister of Finance Dr Ashni Singh indicated that the country would be one of the fastest-growing economies in terms of real gross domestic product (GDP), predicting a rapid transformation in several sectors given that the Government was making efforts to boost the non-oil sector.
He said the favourable economic performance at the end of the first half of 2021 in the non-oil economy bodes well for the upcoming second half of 2021 and into the future.
According to the report, with regard to sector performance, the agriculture, forestry and fishing industries for the first half of 2021 are estimated to have contracted by 2.4 per cent compared with a decline of 4.1 per cent for the corresponding period last year, as a result of lower output from the other crops, sugar growing, forestry and fishing industries.
“At the end of the first half of the year, the Guyana Sugar Corporation (Guysuco) produced 29,650 tonnes of sugar. This performance reflects the record high levels of rainfall, which resulted in waterlogged soils, particularly at the Albion Estate, and strike action that resulted in over 5,600 man-days being lost,” the report indicated.
The report noted the sugar industry declined by 22.4 per cent when compared to the previous corresponding period, citing a 30 per cent mortality of mature cane at Albion, 10 per cent at Uitvlugt and five per cent at Blairmont due to flooding.
Another 15,000 tonnes of sugar in the second crop were also expected to be lost, based on the report.
For the period under review, the fishing industry contracted by an estimated 6.6 per cent and the forestry industry by 7.1 per cent.
The rice industry grew by an estimated 7.8 per cent in the first half of the year, marginally lower than the target set for the period. ‘Other crops’ declined by 7.3 per cent due to flooding, and the livestock industry was estimated to have grown by 10.6 per cent when compared to the corresponding period last year.
Regarding the extractive industries, the report indicated that the mining and quarrying industries grew by an estimated 23.1 per cent in the first half of this year, with higher output from the petroleum and other mining industries despite contractions in gold and bauxite.
It noted that total output from the petroleum sector increased by 65.4 per cent when compared to the corresponding period last year.
At the end of the first half of 2021, consumer prices grew by 5.6 per cent, mainly driven by increased food prices, as a result of the inclement weather and shortages experienced following the flood.
Additionally, the reported pointed out that the bottlenecks in the global supply chain add some measure of imported inflationary pressures. However, it further underscored that the price increases are “transitory” and are unlikely to have lasting long-term impact on inflation’, which is now projected to be in the order of 3.8 per cent for the full year.
Senior Minister of Finance Dr Ashni Singh is expected to table the report at the first sitting of the National Assembly when legislators return from their annual recess.