–services sector leads in job creation, President Ali says

GUYANA is well on its way to diversifying its economy, as evidenced by the maximum number of jobs created for the year 2023 in the services sector, followed by agriculture and manufacturing.

This was according to President Dr. Irfaan Ali during his address at the Private Sector Commission (PSC)’s 31st Anniversary Gala Dinner & Awards Ceremony on Tuesday.
The Head of State, in a room full of private sector stakeholders, said that Guyana’s economy is no longer transitioning, but is now maximizing its potential, based on policy agendas.

“If you look at where the jobs were created, the maximum number of jobs were created in the services sector, followed by agriculture, followed by manufacturing. That is a very interesting story; when one asks how is the diversification of the economy going, this tells the story,” Dr. Ali said.

It was previously reported that the manufacturing, services and construction sectors in Guyana have experienced significant growth due to the expansion of the oil-and-gas sector during the country’s economic boom.
“In economic modelling, an economy moves in two stages; you start from agriculture, then you go to the phase of development, then you move to industrialisation, manufacturing and then you go to services at the higher end,” the Head of State said.

The Ministry of Finance’s mid-year report estimated a 17.7 per cent growth in the manufacturing sector for the first half of the year.
The manufacturing sector witnessed a smooth progression and reaching new heights, as compared to the 11.4 per cent contraction in June 2022.

Additionally, the growth surge didn’t stop there, as the manufacture of beverages expanded by 14.2 per cent in the first half of this year.
“With upward revisions to the outlook for rice and other manufacturing, the overall manufacturing sector is now projected to grow by 7.8 per cent this year,” the Finance Ministry said.

Meanwhile, the services sector grew by 9.1 per cent in the first half of 2023.
This performance was mainly derived from the growth in the administrative and support services, and wholesale and retail trade and repairs. These subsectors grew by 16.1 per cent and 14.2 per cent, respectively.

Moreover, the construction sector is estimated to have expanded by 44.1 per cent in the first half of 2023.
“Momentum in this sector continues to be driven by a ramp up of activity in both the public and private sectors.

Government’s Public Sector Investment Programme (PSIP) grew from $258.1 billion at the end of last year, to a budget of $387.8 billion this year,” the mid-year report revealed.

It was said that this expansion has resulted in the commencement and continuation of infrastructural projects across the country, coupled with other substantial undertakings of the private sector.

“Given the first half performance, and ramped up activity expected in the second half, the sector is now forecasted to grow by 26.9 per cent this year,” the Ministry said.
Guyana’s real Gross Domestic Product (GDP) grew by an estimated 59.5 per cent in the first half of 2023 while the non-oil economy grew by 12.3 per cent.