GUYANA has recorded a growth rate of 43.4 per cent in 2020 despite the COVID-19 pandemic which has, over the past two years, wreaked havoc in many countries in the world, including the Caribbean and Latin America. According recent research done, while there has been a sharp fall in the Gross Domestic Product (GDP) globally, Guyana was the only country among Caribbean and Latin American countries that recorded a positive growth in GDP.

This observation was made by Food and Agriculture Organization Specialist (FAO) Dr. Gillian Smith, who noted that despite the pandemic, Guyana has done relatively well, due in part to the contributions of an emerging oil and gas sector. This is indeed good news, especially when seen against the backdrop of a sharp decline in the global economy which shrank by some 9.1 per cent in 2020.

This is not to suggest that Guyana is immune from the debilitating impact of the COVID-19 pandemic. In fact, the growth rate for Guyana in 2020 was projected to be much higher. According to the FAO specialist, despite the pandemic, the supply of food on the world market did not see any significant decline; however, there has been a general increase in food prices globally. The FAO food commodity price index has steadily risen over the past year or so. The prices of all basic commodities that are traded on the world market have continued to increase and are in fact higher by 30 per cent higher than they were one year ago.

One reason for higher food prices was increased freight charges and other forms of logistical disruptions resulting from the COVID-19 pandemic. In order to mitigate the impact of these increases on consumer items, President Dr. Irfaan Ali, had taken a decision to reduce freight charges to pre-pandemic levels, thereby relieving consumers of the burden of rising commodities prices. The measure will allow for a saving of $4.8B to consumers and to the business community. And only recently, the PPP/C administration has reduced the excise tax on fuel, in order to further ease the impact of rising fuel prices.

It will be recalled that the PPP/C administration, in February this year, had reduced the excise tax rate on both gasoline and diesel from 50 per cent to 35 per cent. However, despite the adjustment, oil prices continue to increase on the world market, moving from over US$60 to over US$80 by the end of the first week in October. Conscious of the impact of such increases on consumer prices, the PPP/C administration has again taken a decision to further reduce the excise tax on gasoline and diesel from 35 per cent to 20 per cent with immediate effect.

According to Senior Minister with responsibility for Finance in the Office of the President, the adjustment in the excise tax rate on fuel from time to time is part of the measures that the PPP/C government is implementing to cushion the domestic impact of world market price fluctuations. The minister emphasised that the implementation of these measures is in keeping with the commitments made by President, Dr. Mohamed Irfaan Ali to ensure that Guyanese consumers continue to be protected from escalating fuel prices on the world market.

The PPP/C administration must be commended for the proactive and prompt actions it has been taking to bring relief to the Guyanese people in this difficult period, one characterised by a pandemic that has taken a serious toll on the economic, social and physical well-being of the Guyanese people. In addition to the fiscal measures taken, the administration has implemented a slew of other measures to bring relief to the Guyanese people, which when taken together, have made a positive impact on the quality of life of the Guyanese people. Among these are COVID-19 relief cash grants, the increase in old age pension and an additional month’s pension payable this month, increased cash grants to parents of school age children in public and private schools, flood relief payments to those affected by the recent floods, and more recently the decision to pay dismissed sugar workers a one-off payment of $250,000, in addition to their severance benefits. The PPP/C administration has also reduced value-added taxes on a range of consumer items which, when coupled with subsidies for electricity and water charges for senior citizens and the full range of other benefits, will certainly go a far way in making life easier for the Guyanese people, especially those in the lower-income brackets and our senior citizens.

As mentioned before, Guyana’s economy is on an upward growth trajectory and the benefits of that growth must redound to the people. Regrettably, a significant sum of money has to be diverted to dealing with the pandemic. It is therefore in Guyana’s interest to bring a speedy end to the pandemic in order to direct more resources for developmental purposes and to further enhance the standard of living and safety of the Guyanese people.