GEORGETOWN, Guyana, CMC—The Guyana government says despite the persistent repercussions of the global poly-crisis, lingering public health challenges, the ever-present realities of climate change, and exposure to natural disasters, the country’s economy continues to record strong growth.
Finance Minister Dr. Ashni Singh, in his 2024 Mid-Year Report released over the weekend, showed that at the end of the first half of this year, the economy grew by 49.7 percent and the non-oil economy by an estimated 12.6 percent. This represents the fourth successive year of expansion in the non-oil economy at the half-year, following the contraction in 2020.
The revised full-year forecast for real gross domestic product (GDP) growth in 2024 is now 42.3 percent overall and 11.8 percent for non-oil real GDP.
Singh said that this economic growth has occurred even as Guyana continues to grapple with external challenges, including continued disruptions to production and supply chains, renewed escalation in freight costs, and interest rate uncertainty, given persistent global inflationary pressures, all of which are exacerbated by conflict and geopolitical tension.
According to the mid-year report, the agriculture, forestry, and fishing industries expanded by an estimated 8.7 percent.
The rice industry grew by an estimated 17.9 percent and is now expected to grow by 8.9 percent for the entire year. The other crops subsector is estimated to have grown by 8.8 percent in the first half, with a revised growth projection of 12.7 percent for the entire year.
The forestry industry is estimated to have grown by 13.2 percent, and growth is expected to remain unchanged at 3.9 percent for the year.
The fishing industry is estimated to have expanded by 27.7 percent and is expected to grow by 16.8 percent for the entire year.
The mining and quarrying sector is estimated to have grown by 64.3 percent in the first half of the year, driven by growth in the petroleum and “other mining” industries.
The petroleum subsector grew by 67.1 percent, with 113.5 million barrels of oil produced in the first six months of this year. The industry is now projected to grow by 56.4 percent for the entire year.
The other mining and quarrying industry, comprising sand, stone, diamonds, and manganese, is estimated to have grown by 45.5 percent in the first half, driven by greater activity in the construction sector. The industry is now projected to grow by 24.7 percent in 2024.
The manufacturing sector is estimated to have grown by 27.5 percent, largely driven by increases in “other manufacturing” and rice manufacturing. It is now projected to grow by 14.5 percent this year.
The services sector is estimated to have expanded by 7.3 percent, driven largely by growth in financial and insurance activities and professional, scientific, and technical services. The overall 2024 growth rate for services is now 7.7 percent.
The construction sector is estimated to have grown by 43.7 percent and continues to be driven by the Public Sector Investment Programme (PSIP) and intensified private investments. It is now expected to grow by 27.2 percent in 2024.
The mid-year review showed that the current account recorded a surplus of US$3,199.9 million, while the capital account registered a deficit of US$3,395.4 million. As a result, the overall balance of payments recorded a deficit of US$184.6 million at the end of the first half of 2024.
Total export earnings grew by 68.7 percent to US$10,221.9 million at the end of June 2024, largely due to higher earnings from crude oil exports, which amounted to US$9,401.6 million in the first half.
Non-oil export earnings increased by 23.4 percent in the first half of this year. Earnings from rice and gold expanded by US$24.7 million and US$12.2 million, respectively, with the latter reflecting favorable price developments.
Total import payments declined over the review period to US$3,245.1 million, primarily attributed to the reduction in the importation of capital goods, as no new FPSO was imported.
The government said that at the end of the first half of 2024, net domestic credit stood at GUY$773.1 billion (One Guyana dollar = US$0.004 cents), 20.3 percent higher than the level at the end of 2023. Total credit to the private sector grew by nine percent from GUY$376.1 billion at the end of December 2023 to GUY$ 410 billion at the end of June 2024.
Credit to households rose by 6.8 percent to GUY$41 billion, with a notable growth of 11.6 percent observed in lending for motor cars.
Within credit to business enterprises, there was notable growth in lending for services, agriculture, and mining and quarrying, of 11.5 percent, 12.3 percent, and 29.3 percent to $148.5 billion, $24.6 billion, and $6.9 billion, respectively.
Real estate mortgages expanded by 9 percent to $140.2 billion, driven by increases in mortgages granted for private dwellings and industrial and commercial properties.
During the first half of 2024, food prices continued to be impacted by a combination of domestic and global factors. These included disruptions in domestic supply chains and increased demand spurred by economic growth and population dynamics. Climate conditions also contributed to challenges in food production and distribution.GEORGETOWN, Guyana, Sept 2, CMC – The Guyana government says despite persistent repercussions of the global polycrisis, lingering public health challenges, the ever-present realities of climate change, and exposure to natural disasters, the country’s economy continues to record strong growth.
Finance Minister Dr. Ashni Singh, in his 2024 Mid-Year Report released over the weekend, showed that at the end of the first half of this year, the economy grew by 49.7 percent and the non-oil economy by an estimated 12.6 percent. This represents the fourth successive year of expansion in the non-oil economy at the half-year, following the contraction in 2020.
The revised full-year forecast for real gross domestic product (GDP) growth in 2024 is now 42.3 percent overall and 11.8 percent for non-oil real GDP.
Singh said that this economic growth has occurred even as Guyana continues to grapple with external challenges, including continued disruptions to production and supply chains, renewed escalation in freight costs, and interest rate uncertainty, given persistent global inflationary pressures, all of which are exacerbated by conflict and geopolitical tension.
According to the mid-year report, the agriculture, forestry, and fishing industries expanded by an estimated 8.7 percent.
The rice industry grew by an estimated 17.9 percent and is now expected to grow by 8.9 percent for the entire year. The other crops subsector is estimated to have grown by 8.8 percent in the first half, with a revised growth projection of 12.7 percent for the entire year.
The forestry industry is estimated to have grown by 13.2 percent, and growth is expected to remain unchanged at 3.9 percent for the year.
The fishing industry is estimated to have expanded by 27.7 percent and is expected to grow by 16.8 percent for the entire year.
The mining and quarrying sector is estimated to have grown by 64.3 percent in the first half of the year, driven by growth in the petroleum and “other mining” industries.
The petroleum subsector grew by 67.1 percent, with 113.5 million barrels of oil produced in the first six months of this year. The industry is now projected to grow by 56.4 percent for the entire year.
The other mining and quarrying industry, comprising sand, stone, diamonds, and manganese, is estimated to have grown by 45.5 percent in the first half, driven by greater activity in the construction sector. The industry is now projected to grow by 24.7 percent in 2024.
The manufacturing sector is estimated to have grown by 27.5 percent, largely driven by increases in “other manufacturing” and rice manufacturing. It is now projected to grow by 14.5 percent this year.
The services sector is estimated to have expanded by 7.3 percent, driven largely by growth in financial and insurance activities and professional, scientific, and technical services. The overall 2024 growth rate for services is now 7.7 percent.
The construction sector is estimated to have grown by 43.7 percent and continues to be driven by the Public Sector Investment Programme (PSIP) and intensified private investments. It is now expected to grow by 27.2 percent in 2024.
The mid-year review showed that the current account recorded a surplus of US$3,199.9 million, while the capital account registered a deficit of US$3,395.4 million. As a result, the overall balance of payments recorded a deficit of US$184.6 million at the end of the first half of 2024.
Total export earnings grew by 68.7 percent to US$10,221.9 million at the end of June 2024, largely due to higher earnings from crude oil exports, which amounted to US$9,401.6 million in the first half.
Non-oil export earnings increased by 23.4 percent in the first half of this year. Earnings from rice and gold expanded by US$24.7 million and US$12.2 million, respectively, with the latter reflecting favorable price developments.
Total import payments declined over the review period to US$3,245.1 million, primarily attributed to the reduction in the importation of capital goods, as no new FPSO was imported.
The government said that at the end of the first half of 2024, net domestic credit stood at GUY$773.1 billion (One Guyana dollar = US$0.004 cents), 20.3 percent higher than the level at the end of 2023. Total credit to the private sector grew by nine percent from GUY$376.1 billion at the end of December 2023 to GUY$ 410 billion at the end of June 2024.
Credit to households rose by 6.8 percent to GUY$41 billion, with a notable growth of 11.6 percent observed in lending for motor cars.
Within credit to business enterprises, there was notable growth in lending for services, agriculture, and mining and quarrying, of 11.5 percent, 12.3 percent, and 29.3 percent to $148.5 billion, $24.6 billion, and $6.9 billion, respectively.
Real estate mortgages expanded by 9 percent to $140.2 billion, driven by increases in mortgages granted for private dwellings and industrial and commercial properties.
During the first half of 2024, food prices continued to be impacted by a combination of domestic and global factors. These included disruptions in domestic supply chains and increased demand spurred by economic growth and population dynamics. Climate conditions also contributed to challenges in food production and distribution.
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