-due to deliberate policies, programmes implemented by the government to mitigate
impact of ‘imported’ inflation

THE effects of global inflation have significantly impacted different regions, yet the people of Guyana have been shielded from the worst consequences due to the deliberate policies and programs implemented by the government of the Peoples Progressive Party, according to President Dr. Irfaan Ali.

The Head of the State in a live broadcast statement on Friday night, said that despite being challenged by the shocks brought on by the COVID-19 pandemic, the pressures from rising transportation costs and rising costs in the movement of goods and services, the government of Guyana has remained resilient in its response.

“We had the Russia Ukraine war, which resulted in rising costs of energy, grains, transportation, then we have now the war in the Middle East, which has exacerbated the situation even worse. Outside of all of this, we had long periods of drought and excessive rainfall in some regions, which led to shortened crop time, limited production and shortages in food supply rising energy costs, rising transportation costs, rising production costs, and all of them resulted a net impact of global increase of global inflation,” he said.
The shocks, he reminded are not finite to Guyana. Citing a recent article by global finance expert Dr. Ali noted that global inflation spiked in 179 countries, with countries such as the United States and the United Kingdom, recording inflation rates that reach a 40-year high in 2022.

Unlike those countries, Guyana, the president noted, has been ‘importing’ those rising costs.
“We are importing that inflation. What we have done as the government very successfully is [establish] measures that we put in place to cushion that inflationary costs and rising costs, so that the effect was not transported to the consumer.”
Further examining the global trends, Dr. Ali pointed out that, as a consequential effect of these rising costs and inflation, international food prices rose sharply in 2021 and 2022.
Due to the rapid increase in price indices for meat, dairy products, cereal, vegetable oil, and sugar, there was an increase in the cost of energy, transportation costs, increase in raw material costs, which resulted in a rapid rise in the food supply. Global fuel prices have also accelerated since 2021.

“So this is the global environment in which we are operating in which we are part of and when you look at our fingers, when you look at the inflation rate for Guyana, compared to all of these regions, it is just remarkable,” Dr, Ali said.
Further providing statistics, Dr. Ali pointed out that Guyana has seen a lower food inflation percentage when compared to other countries in the region, and this, he highlighted was not by accident.
“This was by a deliberate set of measures, implemented by the Government of Guyana to boost production, support to the poultry sector, the support to farmers, fertiliser, etc. The expansion of production, the investment in infrastructure to increase production, the building out of a robust agriculture programme,” the President said.

And, while debating the effects of previous government’s imposed burdensome taxes and reduced disposable income, President Ali reiterated that the government’s deliberate policies and programmes are aimed at boosting production, supporting farmers, and cushioning the effects of inflation on the population.

The PPP government, he noted, removed the taxation on machinery and equipment used by farmers and the agricultural sector. This saw advancements mechanisation, increased productivity and reduce costs of production.
“We establish a broiler breeder facility so that we can have more instead of having the full effect of important inflation on hatching eggs. We’re now developing the capacity and capability to produce our hatching eggs,” Dr. Ali said while highlighting one of the many measures the government adopted to address the rising cost of food.

Aside from this, he further highlighted that the government has seen $12.2 billion increase of credit to the sector.
“We saw [increased] credit to the agriculture sector and this is the facts because of all the policies all the measures that we put in place, the monetary policy that we put in place…that is confidence in the policy. That is people responding to the policy. That is the policy working in the interests of the people increasing production,” President Ali said.