Government has a handle on growing oil economy – President Ali
-no hyperinflation, overheating of the economy
The PPP/C Government has a handle on Guyana’s growing economy and will continue to strengthen its masterplan to guard against any wasteful or excess spending of funds.
The International Monetary Fund (IMF) revealed in April that Guyana will see positive growth, although the global economy entered 2022 in a weaker position than previously expected.
It was also revealed that Guyana is on track to seeing some 47.2 per cent growth in its Gross Domestic Product (GDP) by the end of this year.
While Guyanese continue to witness a number of heavy investments in several areas to enhance their livelihoods, the administration has systems in place to prevent overheating of the economy.
An economy is overheated when its productive capacity is unable to keep pace with growing aggregate demand.
It is generally characterised by a below-average rate of economic growth, where growth is occurring at an unsustainable rate. Boom periods are often characterised by overheating in the economy.
Speaking to the Trinidadian press last week, His Excellency, Dr Irfaan Ali assured that his government is taking all necessary measures to secure Guyana’s economy.
“This is something that we are managing, we are very cautious about, and we are ensuring that whatever we do, we are not over extending ourselves, the financial system, and we are keeping to the transformative investment.
“That’s where the balance of management comes in. you could get carried away very easily when you have resources coming your way, and go on a massive expansion plan or expenditure plan that could cause hyperinflation…”the president added.
Dr. Ali explained that even if the current investments have temporary supply issues, it will be the bedrock on which the future transformation will take place.
He said the local economy is creating a lot of opportunities for jobs in both the public and private sectors, to the extent that there are issues with labour supply.
In Guyana, the government has already been able to create thousands of jobs. With the booming housing programme, a host of persons were employed in the sector.
The cost of energy is expected to reduce by 50 per cent, creating a new wave of jobs in the industrial and manufacturing sectors.
The administration has also recently launched its part-time jobs initiative, added to the major economic spur is the construction of six new hotels, where at least 6,000 Guyanese will have to be trained to work in the hospitality sector.
Importantly too, government is pursuing a path that will deliver world class healthcare service.
“We have a private sector that is booming, a private sector that is seeing tremendous transformation. We have an investment portfolio that must be implemented if we are to deliver the housing programme… open up new lands for agriculture, new highways so that we can build the industrial parks and development that we want to do,” President Ali said.