Mar 2014 Financial News

Guyana maintains eight-year economic growth

Mar 26, 2014

Guyana recorded its eighth consecutive year of economic growth in 2013, expanding by 5.2 per cent, Finance Minister Dr Ashni Singh said.

Delivering the GUY$220-billion tax-free budget to the National Assembly late Monday, Singh said non-sugar gross domestic product grew even more rapidly by 6.3 per cent, reflecting the underlying strength of the other sectors of the economy.

Singh told legislators: "It is significant to note that the eight years from 2006 to 2013 represents the longest period of uninterrupted real economic growth in independent Guyana."

Singh said that while the overall performance of the economy remained strong, the sugar industry continued to struggle.

He said sugar production contracted by 14.4 per cent in 2013 to 186,770 tonnes, extending further the industry's underperformance in recent years.

"The issues confronting the industry such as labour shortages and disruptions, irregular weather, and managerial capacity constraints, are well known, and a more concerted effort is required to return the industry to a growth trajectory that would be consistent with viability and profitability," he said.

Singh said the rice industry, on the other hand, had another favourable year, with production of 535,439 tonnes last year, a 26.9 per cent increase over the previous year's output and setting a new record for the highest ever annual production in the history of the industry.

He said ongoing investments in drainage and irrigation, increased acreage, and improved yields together favour continued annual production of more than 500,000 tonnes well into the medium term.

He told legislators that production of other crops grew by 4.2 per cent, while livestock production increased by 4.3 per cent.

"The fisheries industry declined by 6.5 per cent because of some overfishing, which resulted in a suspension of issuance of further industrial fishing licences and a reduction in operational trawler fleet," Singh said, adding that the forestry industry grew by five per cent with total production of 398,964 cubic metres.

The finance minister said the mining and quarrying industries recorded eight per cent growth over 2012. The gold industry achieved total declarations of 481,087 ounces, 9.7 per cent above the previous year.

"This year's level of declarations represents the highest level of production in the history of the industry, exceeding production levels even when Omai gold mines were at their peak. The fortunes of bauxite were somewhat more tempered, with the industry registering an 11 per cent decline in value-added production," the finance minister said.

He said diamond declarations increased by 56.9 per cent, while stone production grew by 47.8 per cent, the latter reflecting the strong boom in construction activity across the country.

- CMC


Source:
Jamaica Gleaner
Wednesday March 26, 2014

http://jamaica-gleaner.com/gleaner/20140326/business/business93.html