The services industry plays a pivotal role in the Guyanese economy, generating over $500 billion and expanding by 10 per cent in 2023 when compared to 2022. This sector contributes 13 per cent to GDP and over 41 per cent to non-oil GDP. This was revealed in the Guyana Marketing and Services Association (GMSA) Annual Report for 2023. The report was released on Thursday.
Based on data provided in the report, significant growth rates were observed across various subsectors, with administrative and support services growing by 21 per cent, wholesale and retail trade and repairs by 9 per cent, accommodation and food services by 13 per cent, and transport and storage by 12 per cent. These industries, influenced by the energy value chain, are expected to continue growing as the oil and gas sector matures.
Over the past decade (2014-2023), the selected services sector has witnessed tremendous growth, with finance and insurance, accommodation and food services, information and communication services expanding by over 60 per cent.
Professional services nearly doubled, while administrative and support services saw a remarkable 74 per cent increae. These high growth trends indicate abundant business opportunities.
Lending by commercial banks to the services sector has also increased. Private sector loan balances reached $133 billion by the end of December 2023. This marks a 133% increase in lending compared to the balance of $57 billion at the end of December 2014.
The report also revealed numerous opportunities in various service areas such as;
• Tourism, Hospitality, and Catering: Driven by international business activity and eco-tourism policy, with over 545,000 passengers processed at Cheddi Jagan International Airport in 2023, indicating a 13 per cent increase.
• Logistics and Distribution: Fueled by demand for trucking and transportation services, especially from the oil and gas and construction sectors. Guyana aims to become a logistics hub with improved linkages to Brazil and Suriname.
• Financial Services: Growing alongside Guyana’s expanding economy, including banking, insurance, and investment services.
• Information Communications Technology (ICT): Offering opportunities in web design, network administration, software development, and IT consulting.
Meanwhile, President of the GMSA, Ramsay Ali, emphasised the need for proactive engagement, inviting individuals to take leadership roles within the GMSA to foster growth in various subsectors and contribute to the overall development of businesses in Guyana.
“We need people in the GMSA to really take charge in some of the areas we are not strong in and I am hoping that some of you here today, even though you won’t get elected as members of the executive, there is a place for you in the GMSA to head up some of the sub sectors and we are reaching out to some of you to come onboard,” Ali said during the annual general meeting on Thursday.
