-President Ali says, as Guyana’s non-oil GDP flourishes over four-year span
-points to policies and investments driving increased production, opportunities and job creation

ALTHOUGH Guyana’s booming oil-and-gas sector has driven the country to new heights, robust polices and investments in the non-oil sector, too, must be credited for the country’s rapid economic growth.

This is the belief of Guyana’s President, Dr. Irfaan Ali, who, during a live broadcast on Sunday evening, highlighted the government’s strategic agenda in building a dynamic economy, which is not overwhelmingly based on oil revenues.

The Head of State, in a detailed presentation, pointed to statistics highlighting the non-oil sectors’ growth from 2019 to 2024.

“I believe it’s very important for us to examine the numbers; to examine the key features of the economy between the period 2019 and 2024, so you can have an appreciation of what has taken place over the last four years in our economy, and how our economy has been performing; the impact of government policies and the performance of the economy,” Dr. Ali said, citing statics which show that the non-oil real gross domestic product grew by 41 per cent over the past four years.

This, he noted, demonstrates how the government’s push for economic diversification has yielded results.

“That is how the non-oil economy performed… This is to show that we are now on our way to building a dynamic economy; one that will be globally competitive, and one that is not stuck or overwhelmingly based on oil revenue,” President Ali said.

Continuous efforts, he noted, are being made to ensure that the non-oil economy does not ‘stagnate’, but rather is invested in to support growth and massive enhancements.
“It also shows that our proactive approach is working in relation to preempting the risk of the Dutch disease,” he added.

AVOIDING PITFALLS, CREATING MORE JOBS

The government, he noted, has successfully navigated its way in avoiding ‘pitfalls’ like the economic phenomenon that is the Dutch disease that occurs when a country experiences a rapid increase in revenue from natural resources (like oil or gas), leading to negative side effects in other sectors of the economy, particularly manufacturing and agriculture.

“It shows that our policy of protecting the traditional; building new and expanding the economic base from non-oil is bearing tremendous fruit.”

Providing a further breakdown of how the non-oil GDP has flourished,
Dr. Ali revealed that Guyana’s agriculture sector saw a growth of 17 per cent, while the services sector saw a growth of 28 per cent, and the construction sector saw a growth of 138 per cent. And, at a whopping 153 per cent, mining and other sectors have thrived over the past four years.

“This tells a story of an economy that’s performing in every sector; one that has seen growth in almost all of the main areas of economic expansion, diversification and modernisation.”

INVESTMENTS AND OPPORTUNITIES

This economic boost, he further pointed out, is directly linked to job creation, homeownership, and many other spinoff benefits.

With regards to agriculture, the country would have seen increased production and a better yield of crops which translated into investments, and the confidence of the private sector in agriculture.

This is linked to the jobs being created, and more persons being involved in the production, agro-processing and expansion in modern farming techniques and services.

President Ali also alluded to the growth that is being reflected in the country’s tourism, Information and Communication Technology, services and construction sectors.
He noted that growth is even being reflected in the communities and their respective households.

“We see this everywhere in our country. If you drive throughout the country, you will see new factories, new processing plants, and new housing schemes are all being invested in,” President Ali said.

Private sector expansion, too, is notable. “What we have seen is a rapid expansion in investment from the private sector for construction, industrial construction, manufacturing for commercial purposes,” he added.

EXPORT EARNINGS

Meanwhile, Dr. Ali pointed out that non-oil GDP can also be linked to the country’s export earnings, which has reflected a 163 per cent increase.

“This tells you that the performance of the economy is necessary, and the growth of the economy has necessitated an expansion that has resulted in an import value; an increase in import between 2019 and 2024.”

He explained that this massive growth is intricately linked to the diversification and growth of the productive sectors, with the non-oil capital goods imported showing a 252 per cent increase.

He pointed out that the implementation of programmes for agriculture, food security, the expansion and incentivising of the agricultural sector saw more people investing more in agricultural machines. This constituted a 500 per cent increase for agriculture machines.

And further, with the government focusing on expanding industrial parks, and providing incentive for more industrial activities, a 142 per cent increase was recorded.

Meanwhile, with regards to transportation, which includes machines such as barges and trucks, a 534 per cent increase was recorded.

Further, the growth in building materials and other capital increased at a rate of 201 per cent and 422 per cent, respectively, over the four-year period.

“What this tells you is that the growth is linked to productivity; the growth is linked to the expansion of the economy. The growth is linked to the policies of the government that expanding the economy to create jobs, keep jobs, [and] expand the economic base of our country.”