Ever since the global financial crisis many countries across the various continents are still struggling with their economies and while some have rebounded, the situation is still gloomy and this may last for another few years.
In September this year the International Monetary Fund (IMF) reported that the global economy is much weaker than believed just months ago, and growth will pick up only slightly next year.
The IMF lowered its growth forecasts for the global economy to 4.0 percent for 2011 and 2012, saying activity had “weakened significantly,” but warned of a return to recession if Western leaders fail to get their economies back on track.
“The evidence points to continued, uneven growth,” the IMF said in a twice-yearly outlook report.
The global economy, which rebounded in 2010 following the 2008-2009 Great Recession, has been dragged down by problems in the advanced countries, particularly the United States and the Euro-zone, it said.
The IMF noted that Latin America and the Caribbean will experience strong economic growth of 4.5 percent this year and 4.0 percent in 2012 thanks largely to commodity exports and despite slow global growth, the IMF said in its annual forecast..
It slightly decreased its 2011 growth forecast for the Region — down from the 4.6 percent predicted in June — but maintains a positive outlook, with variations by countries.
The forecast comes on the day the IMF reported that the global economic recovery is slowing, and projected world growth of 4 percent in both 2011 and 2012, down from over 5 percent in 2010.
How well has our country fared? We have every right to give ourselves a pat on the back in this regard, because in the first half of this year, we had a robust growth of 5.9%
THE Guyana economy maintained robust growth in 2011 despite the continuing difficulties in the major export markets of the United States (U.S.) and Europe. In fact, it has been recording positive economic growth over the last four years.
This is according to an Economic Commission for Latin America and the Caribbean (ECLAC) report released earlier this week. It said the estimated, overall growth for 2011 is 4.8 percent, while the forecast for 2012 is for an expansion of 4 percent. The compilation said Guyana is expected to continue its pursuit of the Low Carbon Development Strategy (LCDS), in light of the victory of the ruling People’s Progressive Party/Civic (PPP/C) at the November polls, despite a much reduced majority in Parliament.
The managers of our economy must be commended for their astute stewardship, particularly against the backdrop of a most difficult and challenging global financial environment. This has been no mean achievement.
The International Monetary Fund (IMF) in March this year said that despite external and domestic shocks, the Guyanese economy demonstrated resilience and registered a fifth consecutive year of robust growth last year. In a statement following an assessment of the local economy, the IMF said that Real Gross Domestic Product (GDP) expanded by around 3.4 per cent, slightly more than in 2009, supported by expansion in the gold and services sectors, which helped offset lower output in the sugar sector.
It noted that end-year inflation rose to 4.4 per cent, from 3.7 per cent in 2009, reflecting higher food prices.
The Washington-based financial institution said that although the external current account deficit is estimated to have widened to 11.4 per cent of GDP, a steady inflow of public external financing and foreign direct investment were sufficient to finance the deficit and strengthen foreign reserves to the equivalent of five months of imports.
So in all likelihood 2012 will be yet another year of impressive economic growth, which should bring greater social benefits to the people and help improve living standards and bring a better life for all which is the objective of the current government.