$213B earned from exports in first quarter
Non-traditional agricultural produce being prepared at GMC's packaging facility for export
Non-traditional agricultural produce being prepared at GMC's packaging facility for export

–oil exports, higher prices for gold, rice could increase earnings by year-end

THOUGH obstructed by the effects of the COVID-19 pandemic, domestic issues and external shocks in 2020, Guyana managed to ride the waves of the challenges in the first quarter of 2021, and not only commenced its recovery, but also recorded an increase in exports by US$379.6 million.
Guyana’s economy, over the years, has been driven mainly by primary production, while its main exports include sugar, rice, gold, bauxite, rum, shrimp, timber, and, of recent, oil.

This year, despite contending with the challenges of the pandemic, the country managed to record a merchandise trade surplus of US$369.2 million compared to a deficit of US$1 million last year. And based on the Bank of Guyana’s quarterly report, which was release recently, this outturn reflected a US$379.6 million growth in exports when calculated against the corresponding period last year.

Aggregately, Guyana earned US$992 million or G$213 billion from the export of local commodities, with higher export receipts stemming from US$674.1 million for crude oil and US$20.9 million from bauxite.
There were, however, lower receipts from gold, ‘other export,’ rice and timber by US$36.2 million, US$7.3 million, US$4.4 million and US$0.1 million, respectively. As outlined by the Bank of Guyana, at the end of the first quarter of this year, gold accounted for US$205.6 million of total export receipts, while rice accounted for US$32.2 million; rum, US$12 million; shrimp, US$11.9 million; timber, US$6.4 million; sugar, US$4.6 million and ‘other,’ US$24.3 million.

Moving forward, the prospects remain positive, as the central bank projects improvements in export earnings largely due to oil exports supplemented by higher export prices for gold and rice.
Added to this, President Irfaan Ali, in November, 2020, had said that trade facilitation is an area which will receive the government’s attention.
Issues such as delays in customs clearance, increase costs and reduce export competitiveness will soon be addressed through an electronic single window for trade, which will reduce time and costs, the President said.

“We will also be seeking to ensure that investors’ applications and requests are facilitated more promptly. As part of our agenda to improve ease-of-doing business, the Guyana Office for Investment (Go-Invest) is being restructured as a vehicle to attract and facilitate investment and export promotion,” President Ali related.
But, although facilitation of investment is expected to be easier, the President said the government will be working to enhance the competitiveness of local businesses.
Through the National Quality Infrastructure (NQI) project, the government will create a catalyst for competitiveness and increased global market access.

The NQI aims to improve the quality of local products and services, thereby stimulating greater demand. The implementation of the NQI will bolster the ability of local businesses to engage in global trade and increase their competitiveness therein.
To achieve the projected targets, stakeholders will have to navigate not just the lingering direct and indirect challenges of COVID-19, but also those created by flooding in certain parts of the country. However, even with this being the case, the foundation has been set for the country to continue along the path of positive economic growth.

In the first quarter of this year, the country benefited from oil output, while the non-oil economy registered mixed output performance in major sectors.
And, as the country pushes ahead, the Bank of Guyana projects that the local economy will record real oil Gross Domestic Product (GDP) growth of 20.9 per cent while the non-oil economy is estimated to grow by 6.1 per cent.

“This performance is expected to stem from expansions in all the major sectors due to the reopening of the economy as the ongoing vaccination programme continues and the COVID-19 restrictions continue to be lifted.
“However, the new variants of the coronavirus pose a threat to this outlook, as there is the possibility of another lockdown. Notwithstanding, the end-of-year inflation rate is expected to be 1.6 per cent due to increased economic activities as the economy picks up,” the central bank noted.

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