2.5% growth expected this year
Georgetown -- Nov. 13, 2009 -- Guyana’s economy remained resilient, despite the poor performance of
the traditional industries, especially sugar, in the first half of 2009
and the ongoing global financial and economic crisis, buoyed by a 1.1%
GDP increase in the non-sugar sectors.
This is as a
result of Government’s efforts to diversify the productive base of the
Guyanese economy which has started to pay significant dividends, with
the non-traditional sectors of livestock production, other crops,
distribution, and transportation and communication leading the way.
A growth rate of three percent had been projected for the livestock
sector for 2009, primarily based on the facts that the industry was
poised to benefit from the improved breeds of cattle and the number of
swine distributed in 2008, increased production of poultry meat and
reduced levels of grain prices.
At the end of June, poultry meat, beef and pork production had all
increased over the previous year’s levels for the same period. As a
result, livestock production grew by 4.4% in the first half of 2009 and
the budget target for the year of three percent has been revised to
four percent.
The other crops sector is estimated to have grown significantly above
the path that was required for an annualized two percent growth rate,
recording a five percent growth rate for the half-year. The continued impact of the ‘Grow More Food’ campaign and the improved
access of produce from Region Six to Georgetown markets with the
opening of the Berbice Bridge at the end of 2008 all converged to
ensure a boost in supply of vegetables and fruits to households. The
production performance is projected to be sustained throughout the
second half, with overall output for the year being revised upwards to
five percent.
The distribution sector recorded three percent growth at the end of the
first half of the year, reflecting increased imports of consumer goods
and fuel and increased agricultural produce which served to bolster
distributive activities.
The sector has the platform to remain on its growth path, and is
expected to exceed the projected annual growth target of 3.5%, and is
estimated to grow by four percent by the end of the year. The transportation and communication sector was projected to grow by
four percent in 2009 reflecting the greater level of activities between
the coastland and interior areas.
In the transportation sub-sector, the opening of the Berbice Bridge
last December reflected in a definitive shift from the use of the ferry
service to speed-boat service and road travel via the Bridge. At the half-year, it is estimated that the sector has achieved a 3.3%
growth rate and will directly benefit from the predicted higher level
of economic activity in the second half, which will put the sector on
the path to achieve a growth rate of 6 percent.
Given the strength of the non-sugar sector of the economy, and the
expected increase in sugar production in the second half of 2009, it is
expected that the Guyanese economy will grow by 2.5% for the year.