Mid-year report: Guyana’s real GDP grew by 49.7%
Guyana’s economy has demonstrated remarkable resilience and growth, with President Dr Irfaan Ali announcing that the country’s real GDP grew by an impressive 49.7% in the first half of 2024.
This substantial economic expansion is reflective of a strong and diversified economy that has weathered numerous challenges while continuing to thrive, Dr Ali posited.
Economic Dynamism Amidst Challenges
President Ali highlighted the dynamism of Guyana’s economy, which, despite facing difficulties, such as in the construction sector due to a shortage of workers, continues to grow and expand. He emphasised that Guyana is entering a phase where public and private sector investments will be ramped up even further in the second half of the year providing additional impetus to this expansion. However, this will require careful policy initiatives to support the projected growth and development, and he said the government is committed to this.
Growth Beyond Oil: A Strong Non-Oil Economy
What stands out in Guyana’s economic narrative is the consecutive double-digit growth in the non-oil economy, which President Ali attributes to deliberate policy initiatives, strategic planning, and the confidence that the private sector has in the country’s economic future. The growth is not accidental, he said, but is the result of well-implemented plans and programmes aimed at stimulating the private sector.
Agriculture, Forestry, and Fisheries: A Mixed Performance
In the agriculture sector, rice has shown tremendous growth with a 17.9% increase, driven by investments in drainage and irrigation, farm-to-market roads, and the expansion of cultivated land. However, challenges remain in the sugar industry, which contracted by 60% in the first half of the year due to drought and the ongoing recovery from past neglect. Despite these setbacks, there is optimism for a strong bounce back in the second half of the year for sugar, supported by increased mechanisation and continuous planting efforts.
In the forestry sector, which grew by 13.2%, the government has successfully revitalised a once-struggling industry. Community forestry associations have been re-energised, leading to reinvestment and expansion.
The fishing industry also experienced significant growth, expanding by 27.7%. The sector is poised for further growth with the introduction of marine cage fishing and increased prawn production.
Livestock Sector: Addressing Global and Local Challenges
The livestock sector faced major impacts from global challenges, including a shortfall in hatching eggs and the emergence of new diseases. However, the government has taken concrete steps to support local poultry producers, who are now in the third generation of revitalisation and reinvestment. Investments in technology, such as modernised tunnel houses, have been made to reduce mortality rates and increase production. The government is also working towards self-sufficiency in hatching eggs, with plans to become a regional producer.
Mining and Quarrying: A Sector in Expansion
Mining and quarrying grew by 64.3%, driven by the petroleum industry and other mining activities. The quarrying sector is expected to see significant expansion in the coming years, with new quarries commencing operations. In the gold industry, despite a 10.3% contraction due to drought and other factor, recent initiatives targeting the illegal sale of gold have shown promising improvements. The government has also allocated additional mining blocks to boost production.
New quarrying operations, which have been in the preparation stages over the past two-three years, are expected to commence this second half of the year.
Construction Sector: Sustained Growth
The construction sector grew by 43.7%, a testament to government and private investment supported by favourable policies such as the expansion of the housing drive and the lowering of interest rates.
The Path Forward
As Guyana continues on its path of economic expansion, President Ali emphasised that the hard, tireless work of his administration will persist. With the rising sun symbolising rising hope, he expressed confidence that Guyana is on the right track towards a prosperous future.
In the words of President Ali, “Our country is rising.”
