An Economic Miracle

ONE sure indication of rising prosperity is that of rapid and sustained economic growth. The World Bank in its Global Economic Prospects had projected that Guyana’s economy would grow by 49.7 per cent in 2022. This is nothing short of an economic miracle, especially when seen against the background of economic contraction in several countries in the Region, due in part to the impact of the COVID-19 virus.

According to the report, economic growth in the Region is projected to be 7.3 per cent in 2022 and 5.9 per cent in 2023, but much of this is triggered by the high level of growth in the Guyana economy. If one were to discount the impact of growth of the Guyana economy, the growth rate in the Region would be significantly weaker at just around 4.6 per cent in 2022 and 4.2 per cent in 2023.

What all of that means is that Guyana is now a key player in the growth trajectory of the entire Region, which speaks a lot about the visionary leadership and prudent economic management by President Dr Mohamed Irfaan Ali and his PPP/C administration. As pointed out by Senior Minister of Finance within the Office of the President, Dr Ashni Singh, much of this economic turnaround is the result of the hard work by the PPP/C administration in the creation of an investor-friendly environment.

This is indeed good news, especially coming at a time when expectations are high among Guyanese of a better quality of life. These are by no means unrealistic expectations as the PPP/C administration is pressing ahead vigorously with its plans to accelerate economic growth, job creation, attracting local and foreign investments and income generation for the benefit of all the people of Guyana.

These developments are all the more significant when seen against the attempted rupture of the democratic process by the previous APNU+AFC administration, which had cast the country in an unfavourable light in terms of investor-confidence and doing business with the country.

In fact, a number of business deals were aborted or put on hold after it became apparent that the APNU+AFC regime was unwilling to abide by the norms of constitutional rule following its defeat by way of a no-confidence motion, but hang on to power by way of a legal challenge which found its way all the way to the Caribbean Court of Justice (CCJ). The court upheld the constitutionality of the no-confidence motion, but not after nearly two years of political instability and unconstitutional rule caused by the former APNU+AFC regime.

All of that is now water under the bridge and the PPP is now consolidating  the social and economic gains through a number of policy decisions which in effect have allowed for greater disposable income in the pockets of Guyanese by way of tax exemptions, cash grants, financial support to vulnerable individuals, subsidies to pensioners and increased salaries for public servants. The rate of inflation has been largely contained, which means higher real income levels and a consequential bigger basket of goods and services to consumers.

This year’s budget which will be presented by Finance Minister Dr Ashni Singh will no doubt build on the existing social and economic gains made by the PPP/C administration which has been described by the Finance Minister as ‘historic and transformational.’ It is the first budget to be partially financed from oil revenues which is likely to become bigger in the coming years. With a bigger financial envelope, the PPP/C administration will be better positioned to implement several of its manifesto promises and that of the President, who has pledged to utilise the resources of the country to advance the good and well-being of the Guyanese people.

Guyanese are eagerly awaiting what is in store for them in the 2022 budget, even though there are already some hints by both Vice-President Dr Bharrat Jagdeo and Finance Minister Dr Ashni Singh as to what Guyanese can expect. Emphasis is likely to be placed on implementation of the transformational agenda to modernise the country by way of a massive infrastructural programme, creation of new incentives to business and an overall improvement of the standard of living of all Guyanese as articulated by President Ali.

The 2022 Budget Estimates will add further impetus to the current growth dynamic which will catapult this country to new and higher levels of prosperity.

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