Guyana still ranks fifth fastest growing economy without oil – President Ali
Guyana is still the fifth fastest growing economy in the world without taking the impact of the oil and gas economy into consideration, as the country’s non-oil sectors have seen robust growth over the past year.
This was disclosed by His Excellency Dr Mohamed Irfaan Ali on Saturday.
“Without oil, our economic growth would still run fifth in the world as a fastest growing economy in the world in 2020,” President Ali said during a live update on his Facebook page.
With a projected growth of 58.7 per cent by the International Monetary Fund (IMF), Guyana is ranked number one in the world and Fiji is second with a projected economic growth of 12.5 per cent.
Moreover, Guyana’s non-oil economy is projected to grow by 9.5 per cent this year, according to the Finance Ministry‘s half-year report.
“Guyana’s economic performance in 2022 was not only remarkable, but it is one that is worth a study,” President Ali noted.
The head of state said this is as a direct result of the PPP/C Government’s programmes and policies, and investments in the non-oil sectors over the past two years.
Agriculture and other crops are projected to grow at 17.9 per cent, while quarrying and mining are projected to grow at 11 per cent.
The construction sector is projected to see a 19 per cent growth while wholesale and retail trade, a 12.5 per cent growth rate. Similarly, transport and storage are projected to grow by 13 per cent and accommodation and food services will grow by 18 per cent.
These, he stated, are as a direct result of the confidence in the economy where more medium and small-sized enterprises invest in a diversified portfolio.
“This is also important when you look at what people call Dutch disease…The diversification of our economic portfolio is holding strong,” President Ali pointed out.
He added that “while oil is bringing in the most needed revenue, the measures by the government targeted the expansion of other economic sectors.”
While the country was able to achieve all of this, Dr Ali pointed out that Guyana has also managed to keep its inflation in single digits.
Guyana’s inflation is projected to be around 7 per cent, which is below the global inflation rate according to the IMF.
“So, from a macroeconomic perspective, looking at our macroeconomic fundamentals in 2022, notwithstanding the complex international environment, we’re operating in… we’ve seen the true result of the policies and measures adopted by the People’s Progressive Party Civic Government,” he noted.
The President said the past two years were spent rebuilding the framework that supports the upliftment and development of the non-oil sectors which suffered neglect under the previous administration.
“In the coming years you will see in a greater sense the impact of investment being made now,” he asserted.
As it relates to commodity prices, at the end of the first half of this year, consumer prices were 4.9 per cent higher than the levels recorded at the end of 2021.
President Ali reminded of the host of measures implemented to ease the burden on the population.
Meanwhile, in the oil and gas sector, there are to be 13 lifts of profit oil this year with over US$1 billion in revenue and US$150 million in royalty.