GLOBAL supply chain issues caused by the COVID-19 pandemic, and, more recently, the Russian invasion of Ukraine, have negatively impacted many countries. And while Guyana is not immune to those effects, the nation has remained resilient, recording positive economic growth, and benefiting significantly from the exportation of local commodities during the first quarter of this year.

The country’s economic performance was recorded by the Bank of Guyana (BoG) in its quarterly report, which stated that export earnings topped US$1.3 billion during the period under review.

Specifically, the Central Bank said that the merchandise trade surplus increased by 47.6 per cent, or US$204.4 million, from US$429.7 million to US$634.2 million. This outturn reflected a US$368.4 million growth in exports to US$1,365,200,000.

Higher export receipts, according to the BoG, came from crude oil, which earned US$1.6 billion; “other export,” US$63.8 million; bauxite, US$23.3 million, and timber, US$6.9 million.

Conversely, lower export receipts were from gold, rice and sugar, by US$27.7 million, US$5.3 million and US$2.8 million, respectively.

It was reported that earnings from the exportation of locally produced commodities could reach US$7 billion this year, as Guyana looks to further overcome the pervasive challenges presented by COVID-19, and institute appropriate mechanisms and measures to guard against any eventualities that might arise as time progresses.

Using current basic prices as a benchmark, authorities had determined that Guyana could earn roughly US$7,792,800,000 by the end of this year; this represents an increase of about 55 per cent, when compared with revenues totalling US$4,352,000,000 earned last year.

Notwithstanding the projected volatility in prices, based on Budget 2022, the government intends to maintain and even enhance its approach to stimulating growth in various economic sectors.

WORK IN EARNEST
“Even as we confront, head-on, the formidable challenges before us, our government continues to work in earnest to advance the aggressive agenda for transformation that we had previously outlined. At this moment of unprecedented opportunity for our country, we seek now to convert the bright prospects before us into realised national and individual well-being for all Guyanese,” Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh had said.

Supported by the robust institutional architecture that the government has established, Budget 2022 ensures that two complementary and critically important objectives are met: Firstly, that the urgent development needs of the country are met in the shortest possible time, and that the long-term economic well-being of the country is protected and safeguarded at all times.

The first quarter of 2022 was somewhat a reflection of the government’s vision, as that period was a productive one for Guyana’s economy, which recorded positive economic growth, on account of sustained production in the oil-and-gas sector, and positive output performances in the non-oil sectors.

“As oil-and-gas activities continued, the non-oil economy experienced moderate growth, on account of economic activities regaining momentum from the full reopening of the economy, coupled with fiscal measures to alleviate the rising costs of production and services,” the Central Bank said.

Considering its overall performance in the first quarter of 2022, Guyana’s economy is well positioned to record real oil Gross Domestic Product (GDP) growth of 49.6 per cent, and 7.5 per cent non-oil growth by the end of this year.

This significant growth, the Central Bank related, is expected to be mainly as a result of expansions in all major sectors of the economy, as all COVID-19 restrictions have been lifted, and the economy has been fully reopened. Additionally, output of oil is expected to greatly increase, with the introduction of the Liza Unity.