Guyana’s growth rate is ‘tremendous’ by any standard – Economist

Guyana’s Gross Domestic Product (GDP) grew by an impressive 49.7% in the first half of 2024. There has been much reporting on this but what does it mean? And why should citizens care about it?

Private sector representative and economist, Richard Rambarran was one who firmly stated that the economic performance was significant.

“We’ve seen at the half-year that there is a growth rate in the Guyanese economy of 49.7 per cent. Now by any standards, this is a tremendous quantum of growth,” Rambarran said in an interview with the News Room.

And he explained what the figure meant.

“(GDP) simply represents all of the output that happens within the domestic economy. So if you take what happens in the agricultural, manufacturing, mining sector, all of it, its dollar value gives you your GDP.”

The healthier the growth number is, the larger the GDP is.

“Day to day when we go about our lives, we are impacted by the pace of economic activity.

“(It affects) how much we earn, what the level of inflation is in the country, how much foreign exchange is available, how much potential salary increases one can have, how much new investment there is.

“It essentially means more money, more opportunities, more infrastructure, a better landscape, a better environment,” added.

Rambarran also said there is much value in a broader sense.

Such growth means more commerce and money flowing in the Guyanese economy, more opportunities for investment, and greater employment.

Although it is no secret that a lot of the growth is driven by the petroleum sector, Rambarran pointed out that non-oil sector growth is sound too.

“In Guyana, we see the non-oil economic growth being 12.6 per cent, which by any measure is tremendous.

“Once you go above four per cent of economic growth, you are having healthy growth. To know that Guyana has tripled, over 315 per cent, speaks volumes and speaks positively about the level of commercial activity that is happening in the Guyanese economy.”

Rambarran also pointed out how tremendous growth is being seen in the private sector.

“In the mid-year report, almost 10 percent has been extended, an increase in private sector credit. This means that more funds are being provided on credit to the private sector for activities to be invested in.”