…mining curtailed due to low gold declarations

THE mining and quarrying sector is projected to contract by 2.3 per cent this year despite remarkable growth expectations for the bauxite and other mining sub-sectors, Finance Minister, Winston Jordan said on Monday.

The expected expansion in the mining sector is anticipated to be curtailed by a decline in gold declarations by small and medium scale miners, who accounted for over 64 per cent of all declarations, in 2017. As a result, gold declaration will contract by 13.1 per cent, in 2018, despite an expected expansion in the declarations of large scale miners by 4.3 per cent.

“Mr. Speaker, the bauxite industry is projected to grow by 26.3 per cent, in 2018. However, uncertainty still surrounds the fate of Rusal‘s operations in Guyana, with the US extending the sanctions deadline to December 2018. Other mining is also expected to expand in 2018, by 46.6 per cent, driven by growth in the declaration of diamonds, sand and stone, with the increase in the latter two due to an expansion in construction,” Jordan told the House during his budget presentations.

However, Jordan said the manufacturing sector is expected to grow by 0.9 per cent, in 2018, driven by a 5.2 per cent increase in manufacturing activities outside of rice and sugar. This outturn is attributable to expected increases in the output of food items, beverages, building materials, and pharmaceuticals, among others. Additionally, Jordan said the over the last few years Guyana’s skyline has evolved considerably.

This is evident by the many developments across the breadth of Guyana. “This year, we expect to continue to see remarkable growth in the construction sector, driven by both public and private sector investments. By the end of 2018, this sector is projected to grow by 12 per cent.”

“Mr. Speaker, for yet another year, our services sector is set to expand, this time by 4.1 per cent. The 6.2 per cent growth in wholesale and retail trade, by the end of 2018, would be indicative of continued positive consumer sentiment. Additionally, other service activities are anticipated to increase by 15.0 per cent, spurred by increased visitor arrivals that are linked to events such as national celebrations, sports, conferences, expositions and oil and gas activities. The latter is also expected to be partly responsible for projected growth of 7.5 per cent in rental of dwellings.