Guyanese to make up 85 to 90 per cent of workforce at Royal International
–– luxury hotel on schedule to open early next year
LOCATED at Track JW, Mandela Avenue, Georgetown, the Royal International Hotel is expected to offer luxury that is incomparable anywhere in Guyana.
One of the many misconceptions about this lavish establishment is that it is an Asian entity.
According to Chartered Accountant Terrence Jas -
karan, just around 85 to 90 per cent of the persons that will be employed by the hotel will be Guyanese.
Speaking on behalf of the Chief Executive Officer (CEO) of Royal International Jason Wang, Jaskaran explained to the Guyana Chronicle that contrary to what is being perceived, most of the businesses there are Guyanese-owned.
The 254-room hotel is slated for an early 2025 opening. Some of its offerings are already in place and is being well received by the public. It will have four restaurants: the Royal Restaurant, the Royal Lounge Restaurant and poolside, the Love and Latte Cafe which is slated for opening soon, and a hot pot, along with the Space Gym and a Gaming Lounge.
Jaskaran mentioned that while the hotel is geared for this official opening, there have been some ‘staged’ openings as more stores and businesses open at the establishment.
He remarked that it is, “An all-in-one experience. So, when people come into the country, it’s not just giving them a place to stay. It’s giving them a place to stay with options as well; things to do in an environment that
is safe, and that they don’t have to travel far.
“They can come for entertainment. They can come for food. They can bring their kids. There is also a gaming facility, a kid-friendly gaming facility, a kid zone as well.”
Jaskaran noted that the concept of the hotel was birthed by Wang, and he reminded that in a few interviews, the CEO had stated that on his arrival in Guyana,
something he recognised that was missing was a worldclass hotel that encompassed an all-in-one experience (places to shop, eat and gym facility) under one roof. Although construction for this hotel commenced in 2011, there were some setbacks in terms of workers and getting materials, among other difficulties. It was stated that the
A preview of what is to come when the Royal International Hotel opens its doors in early 2025 (Delano Williams photos)
Careful planning driving sustainable development of Guyana’s economy
W ITH the emergence of the nation’s booming oil and gas sector, the Government of Guyana continues to prioritise the country’s natural resources.
Shedding light on the major strides the country’s natural resources and agricultural sector have made, President Dr Irfaan Ali, in a recent addressed the nation outlined the nation’s agricultural development
of our natural assets as we plan a comprehensive strategy in how we sustainably develop and target our natural assets in a diversification and expansion of our economy,” President Ali said.
According to the midyear report shared by President Ali, the government’s countless investments continue to have far-reaching impacts on the mining and agricultural sectors.
look for the sector is very positive for the remainder of the year, with growth now projected at 41.3 per cent for the full year,” President Ali said.
As one of the country’s major revenue areas, gold mining has been revitalised in the years and months; resulting in a positive impact on the sector, as the President stated, “The gold industry also had a contraction of 10.3 per cent in
and the government’s plan to sustainably develop the natural resources.
Since taking office, the People’s Progressive Party/ Civic (PPP/C) has emphasised the significance of the country’s natural resources alongside the oil and gas industry. Over the past three and a half years, the government has worked tirelessly to ensure the continued development of the sector. Among the major investments in this area is the mineral mapping exercise by American company Global Venture Consulting.
Emphasising the importance of this and similar ventures made by the government, President Ali said this is the first step in crafting a comprehensive plan for the sustainability of Guyana’s natural assets.
“This study will give us a better understanding
In providing a breakdown of the report, he shared that the country has experienced exponential growth in the first half of the year, and his administration is working to ensure that Guyana continues on this upward trajectory.
Addressing the mining sector, the Head of State shared that there has been a more than 60 per cent boost.
“In the extractive sector, mining and quarrying sectors are estimated to have grown by 64.3 per cent in the first half of the year, driven by growth in the petroleum and other mining industries.
“The bauxite industry has [sic] some challenges in the first half of the year, which [sic] contracted by 20 per cent. However, with the largest producer expecting to improve output in the second half, the out-
by an estimated 17.9 per cent in the first half of the year. And this growth is as a direct result of the impetus we have placed in the industry, the investment in drainage and irrigation.”
The sugar industry has been a precedented boom as the government’s efforts to revitalise the sector continue to be seen.
As President Ali shared, “In the first half of this year, not only did we have the issue of the drought that affected the growth of cane in the fields, but also the period of regrowth, the period of having new production ready for the factories.”
He further added that, “We are hoping and projecting that in this second
crop, there will be an enormous bounce back from this contraction in the first half of the year.”
Tackling the poultry and livestock sectors, the President shared that the investment will continue in the sectors, advancing personnel, knowledge, and the use of technology.
As he stated, “The large poultry investors and farms in the country are now investing in technology, especially given the fact that the demand for poultry is growing at an exponential rate.”
He then went on to state that, “The forestry sector is estimated to have grown by 13.2 per cent in the first half. The forestry sector is once again vibrant. Com-
munity forestry associations and organisations are once more revitalising themselves, expanding, reinvesting, and retooling.”
He further added that, “The fishing industry is also estimated to have expanded by 27.7 per cent in the first half of this year and we are going to continue to see greater expansion in this industry.”
President Ali’s address and report showcase the government’s commitment to sustainable development across all natural resource sectors.
By balancing growth in traditional industries with the emerging oil and gas sector, Guyana aims to create a diversified and resilient economy.
the first half of 2024.”
The President further elaborated, stating, “The other mining and quarrying areas, which comprise sand, stone, diamond, and manganese, are estimated to have grown by 45.5 per cent in the first half of the year, driven by greater activity in the construction sector. This industry is now projected to grow by 24.7 per cent in 2024.”
Shifting his focus to agriculture, the rice industry has seen a major economic development, with more than 15 per cent growth in the first half of 2024. This massive boost over just a few months is largely owed to the various innovative policies put in place by the Government of Guyana. As the Head of State explained.
“We had tremendous growth in the rice industry; the rice industry grew
$28.9B expended on agricultural sector in first half of 2024
OF the $97.6 billion allocated to the Ministry of Agriculture in 2024, some $28.9 billion was spent on developing Guyana’s expanding agricultural sector during the first half of 2024.
This is according to the mid-year report released recently by the Senior Minister in the office Of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh.
Notable initiatives undertaken by the government to enhance the agricultural sector include the building of 75 new shade houses for high-value crops.
These crops are cultivated using hydroponics farming. They are a collaboration between the government and the private sector.
Some high-value crops include bell peppers, celery, broccoli, cilantro, carrots,
lettuce, mint, cauliflower, chilli peppers, and tomato. This investment benefitted 43 farmers.
Additionally, in the sugar industry, over 2,000 hectares of land was converted to cultivate and harvest sugar cane at the Rose Hall, Albion, Blairmont, and Uitvlugt Estates.
A sugar dryer budgeted at $60 million will be installed by the end of the year. This will enhance the quality of the sugar and guarantee increased production within the industry.
Additionally, by the end of the year, the number of employees within the sugar industry is expected to increase to 8,300 persons.
Favourable results were also noted in the rice industry for the first half of the year.
According to the report, when compared to the same
period last year, an increase of 19.8 per cent in production was observed.
Technical services and training were provided to rice farmers along with the introduction of advanced technological mechanisms, which yielded benefits of higher productivity at lower operational costs.
A total of $526.5 million was spent by the Guyana Rice Development Board (GRDB) to support the industry.
Meanwhile, $60.7 million was spent to accelerate the expansion of the coconut industry within the past six months. About 13,000 seed nuts of the hybrid variety were imported from Brazil.
With the expansion of large-scale farming and the increased export of agricultural produce, alongside the training of farmers in vari-
ous agricultural disciplines, Guyana continues to solidify its position as the food basket of the Caribbean.
The government remains steadfast in its commitment
to bolstering the agricultural sector by investing towards its advancement and efficiency.
These efforts are part of Guyana’s commitment to reducing the Caribbean Community’s (CARICOM) US$5 billion food-import bill by 25 per cent by 2025. (Extracted from the Ministry of Agriculture)
Guyanese shielded from full brunt of global economic conditions
–– 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 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. Cit-
ing 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 re-
gions, 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 im-
Guyanese to make up 85 to 90 per cent ...
project kicked off just after COVID-19 emerged in 2020.
The Royal International Hotel, in addition to providing Guyanese with employment across all sectors, is focused on providing quality accommodation to all who pass through their doors.
With Guyana’s rising tourism and hospitality sector, the need for facilities with adequate accommodation grows daily.
Jaskaran underscored that there is not just a need for accommodation, but rather it must be world-class
accommodation.
Working hand in hand with accommodation, is the hotel’s location, to which he pointed out, “we’re in the heart of Georgetown — Sheriff Street. We have access to the East Coast, the East Bank, Georgetown. So, it’s one of the few places that is [sic] located centrally in Georgetown where you can access [the] East Bank, [the] East Coast, and Georgetown.”
Additionally, he said:
“We don’t have this concept in Guyana. We don’t have a boutique hotel. We have places where you stay and
portant 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.
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sleep, and then generally you go out, you go somewhere. But the difference is it’s a new concept. You’re coming here and you have an all-in-one experience.”
At the same time, he mentioned that the mall which will be known as the Royal Orchid Mall, is expected to be open completely by September 2025.
According to Jaskaran, the mall will have a food court, as well as two theatres that are in the process of being constructed.
He noted as well that a supermarket will also be opened there soon.
President Dr. Irfaan Ali
Greater interlinkages, new lands, massive opportunities created
– as President Ali opens $15.1B Schoonord to Crane four-lane highway
CREATING an avenue for greater interlinks across the country, the new Schoonord to Crane four-lane highway in Region Three (Essequibo Islands-West Demerara) was on recently commissioned by President Dr. Irfaan Ali.
In his feature address at the commissioning ceremony, the Head of State highlighted how the modern throughway will further position Guyana as a major transportation and logistics hub.
The new highway, which features three roundabouts – 11 reinforced concrete box culverts, 36 prestressed bridges, and road signage and markings, will see improved transportation across Regions Two (Pomeroon-Supenaaam), Three, Four (Demerara-Mahaica) and Seven (Cuyuni-Mazaruni).
“This highway is the first phase of the highway that will go to Parika. And the highway that will go to Del Conte, that will open up thousands upon thousands of acres of land for housing; for agriculture. And we have already started work on the Sand Hill alignment; and the Sand Hill alignment will be from right opposite Bartica,” Dr. Ali said.
This “carefully articulated vision”, he said, will see the coastal regions being strategically linked to the hinterland and mining regions.
He pointed out that not only is Region Three crucial to this link, but
it’s already on the cusp of massive transformation, with the government executing several modern infrastructural projects to unlock new opportunities for residents.
At the centre of the modernisation plans are the construction of a new ‘flyover’ Demerara Harbour Bridge, which will stretch from Nandy Park, on the East Bank of Demerara (EBD), to La Grange, on the West Bank Demerara, and the construction of the Wales gas-to-energy project.
“The new phase of development will see about 30,000 house lots in the West Bank area alone; this is a type of transformation. The skill and speed of the transformation is enormous, and it is being done with a careful plan,” President Ali added.
Meanwhile, Housing and Water Minister Collin Croal, in his remarks, noted that the commissioning of the new highway would immediately bring forward development, reduce
travel times, and open new opportunities for entrepreneurship.
“In the four years since we took office, we have invested heavily in this region; from the upgrading and construction of roads to increasing housing development to improving healthcare facilities, access to utilities, including water. We have ensured that these investments can positively impact the people of Region Three, by creating jobs and increasing commercial activity within the
region,” Minister Croal said, adding: “It is a new dawn for Region Three.”
The Housing and Water’s Ministry’s Central Housing and Planning Authority (CH&PA) spearheaded the massive project to the tune of $15.1 billion.
And, Minister within the Ministry of Housing and Water Susan Rodrigues disclosed that the project was executed by a team of young engineers and professionals trained under President Ali’s leadership while he was the Housing
and Water Minister.
“I’m very proud of this project, especially because it is another four-lane concrete highway that was executed through the Ministry of Housing and Water, and Central Housing and Planning Authority, done by a team of young people, young engineers, clerk of works, architects, surveyors; young men and women who have been pushed to their limits,” Minister Rodrigues said.
Guyana eyes deepwater port to boost trade, economic growth – as government evaluates proposals
GUYANA’S government is taking significant steps toward establishing a deepwater port, a project poised to enhance the country’s role as a major trans-shipment hub in the region, according to Vice President, Dr. Bharrat Jagdeo.
During a press conference Dr Jagdeo shared updates on the initiative, highlighting the importance of selecting a model that supports large-scale international trade and integrates with broader regional development strategies.
Previously, President Dr. Irfaan Ali had revealed that the new deepwater port could be built at New Amsterdam, in Region Six (East Berbice- Corentyne) which will open new avenues for international trade, particularly with Brazil, Guyana’s southern neighbour due to the road link to Lethem, Region Nine (Upper TakutuUpper Essequibo).
Jagdeo, however, explained that the government was currently evaluating several proposals for the deepwater port, which aims to accommodate the largest vessels in the world.
“There are several proposals now that we have received, and these would all have to be stacked against one another…We’d have to assess which is the best proposal and whether the proposed developers have the expertise to implement the project, and they have the financial capacity to do so,” the Vice President said.
VISION FOR REGIONAL INTEGRATION
The proposed deepwater port is not just a standalone project but a key
component of Guyana’s broader vision to integrate with northern Brazil.
According to Jagdeo, by developing a port that can handle large vessels, Guyana aims to become a central player in regional trade, facilitating the movement of goods between South America and global markets like the Panama Canal.
“We believe the best model should be… going out right into the deep, that would allow the largest vessels in the world to come here…That would be, in the long run, the most sustainable thing to do because you’d avoid a lot of the dredging costs and everything else, Jagdeo explained.
Given Guyana’s strategic geographical location on South America’s edge and with its strategic integration with Brazil, combined with the port’s capacity to handle significant cargo volumes, is expected to make Guyana a major growth hub, increasing its attractiveness as a destination for trade and investment.
The deepwater port is expected to significantly reduce the cost of shipping for Guyanese exports, making them more competitive on the global market. It will also lower the cost of imported goods, benefitting consumers and businesses alike.
“A port of that nature will seriously make our goods that we export, whatever we export, more competitive. The costs of freight out of Guyana are enormous, and sometimes it would affect everything, including our bauxite. And if we can ship bulk, the big ships can come in, you can cut the cost of freight by maybe 60 per cent, which is a huge benefit to making your product more globally competitive,”
Jagdeo noted.
Moreover, Jagdeo highlighted that the port would be a critical infrastructure piece for future economic growth, supporting not just trade but also other sectors like agriculture, manufacturing, and services.
The Berbice project, developed by CGX Energy, has been referred to as a “deep-water port” by the company, but also Vice President Bharrat Jagdeo clarified that it does not meet the criteria for a true deepwater port.
BROADER ECONOMIC STRATEGY
With cheaper energy and a road connection like the Corentyne Bridge to Suriname, the deepwater port project aligns with Guyana’s broader economic strategy, which includes modernising infrastructure and creating new opportunities for trade and investment.
Notable projects, such as the full paving of the Linden-Lethem Road, are intended to enhance connectivity and facilitate the movement of agricultural and mineral products between Brazil and Guyana.
As the government continues to evaluate proposals, the focus remains on selecting a model that maximises long-term benefits for the country.
“It’s an integrated project. Part of the revenue stream to make this project sustainable has to be the integration with Brazil and the business in and out of Brazil, because on its own, we may not be able to generate enough of a revenue stream to pay back the capital costs and to
give a decent rate of return to the equity investor,” Jagdeo said.
In collaboration with CARICOM counterparts Barbados and Trinidad and Tobago, Guyana is actively pursuing a ferry service to facilitate cargo and passenger transport.
The Caribbean Development Bank (CDB) is supporting this initiative, emphasising its commitment to improving food security, and fostering regional co-operation.
President Ali had previously revealed ongoing discussions for a specialised ferry service with Aruba, catering specifically to the transportation of agricultural produce.
Highlighting Guyana’s potential as a major transport hub, he envisions the country becoming the gateway between South America and the world, unlocking vast opportunities for investments and trade.
The President stressed the need for structured mechanisms to harness the potential of inter-regional trade among the Caribbean, South America, and Africa.
The Head of State had underscored the importance of building transportation links via sea and air to achieve greater integration.
Guyana’s strategic significance was reaffirmed during a trilateral meeting among President Ali, Brazilian President Luiz Inácio ‘Lula’ da Silva and Surinamese President, Chandrikapersad Santokhi.
The leaders issued a joint declaration, setting the stage for a comprehensive strategic roadmap with working groups in infrastructure, energy, and security.
Guyana overcomes external hurdles to continue astronomical growth
DESPITE persistent repercussions of the global poly-crisis, lingering public health challenges, the ever-present realities of climate change and exposure to natural disasters, and the domestic pass-through of global economic realities and policies which continued to weigh on the economic landscape within which Guyana operates, the country’s economy continues to record strong growth.
This was highlighted on Saturday by Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh, as he alluded to Guyana’s 2024 Mid-Year Report. The report shows that at the end of the first half of the year, it is estimated that Guyana’s overall economy grew by 49.7 per cent and the non-oil economy by an estimated 12.6 per cent, representing the fourth successive year of expansion in the non-oil economy at the half-year, following the contraction in 2020. The revised full-year forecast for real GDP growth in 2024 is now 42.3 per cent overall and 11.8 per cent for non-oil real GDP.
This growth in the economy, Dr. Singh reiterated, has occurred even as Guyana continues to grapple with external challenges, including continued disruptions to production and supply chains, renewed escalation in freight costs, and interest rate uncertainty given persistent global inflationary pressures, all of which are exacerbated by conflict and geopolitical tension. The continued economic growth is yet another achievement for the People’s Progressive Party/Civic (PPP/C) Government as concurrently, this month the party is celebrating four years since its return to office in August 2020 showing it has maintained an excellent track record in terms of stewardship of the economy.
Over the last four years, strong, resilient, broad-based economic growth was consistently witnessed as the government maintained its aggressive efforts and was unwavering in implementing its policies and programmes. Since returning to office in August 2020, the government’s goal has been not only to modernise the country through massive infrastructural projects, such as road networks and the bridging of communities and regions but to also further improve and provide world-class social services to citizens and enhance the life of every citizen in every home, providing opportunities for them to grow and prosper, as well as accumulate wealth.
The 2024 Mid-Year Report underscores the government’s outstanding economic performance achieved in the first half of the year while highlighting many of the challenges faced and risks to successful implementation of the policies, programmes and projects outlined in Budget 2024. Dr. Singh, while reflecting on his 2024 Budget presentation under the theme ‘Staying the Course: Building Prosperity for All’, reiterated that it “maintained our government’s unwavering focus on improving the
lives of every single Guyanese family, and it articulated in considerable detail how this objective is being pursued and, indeed, is being realised on a daily basis.”
“The Budget reiterated our aim that every Guyanese family must be in a position to meet certain basic needs viewed from a comprehensive multi-dimensional perspective. In particular, the Budget emphasised the importance of every family having access to: decent housing including the potential to own their own home; sufficient nutritious food to experience zero hunger; good quality healthcare from conception to old age; relevant educational and skills training opportunities to equip those of employable age for the world of work; potable water and sanitation; and recreational facilities to support healthy living for people of all ages.
Significantly, Budget 2024 also highlighted the relevance of these necessities not only for current comfort but also for long term economic empowerment.”
The key macroeconomic highlights in the Mid-Year Report for 2024 are as follows:
Economic growth
– Overall real GDP grew by an estimated 49.7 per cent in the first half of 2024.
– The non-oil economy grew by an estimated 12.6 per cent in the first half of the year, representing the fourth successive year of expansion in the non-oil economy at the half-year, following the contraction in 2020.
– The revised full-year forecast for real GDP growth in 2024 is now 42.3 per cent overall and 11.8 per cent for non-oil real GDP.
SECTORAL PERFORMANCE –AGRICULTURE, FORESTRY AND FISHING
The agriculture, forestry and fishing industries expanded by an estimated 8.7 per cent in the first half of the year:
– The rice industry grew by an estimated 17.9 per cent in the first half of the year and is now expected to grow by 8.9 per cent for the entire year.
– The other crops subsector is estimated to have grown by 8.8 per cent in the first half, with a revised growth projection of 12.7 per cent for the entire year.
– The forestry industry is estimated to have grown by 13.2 per cent in the first half, and growth is expected to remain unchanged at 3.9 per cent for the year.
– The fishing industry is estimated to have expanded by 27.7 per cent in the first half and is expected to grow by 16.8 per cent for the entire year.
EXTRACTIVE INDUSTRIES
The mining and quarrying sector is estimated to have grown by 64.3 per cent in the first half of the year, driven by growth in the petroleum and “other mining” industries.
– The petroleum subsector grew by 67.1 per cent, with 113.5 million barrels of oil produced in the first six months of this year.
The industry is now projected to grow by 56.4 per cent for the entire year.
– The other mining and quarrying industry comprising sand, stone, diamonds and manganese, is estimated to have grown by 45.5 per cent in the first half, driven by greater activity in the construction sector. This industry is now projected to grow by 24.7 per cent in 2024.
MANUFACTURING, SERVICES AND CONSTRUCTION
– The manufacturing sector is estimated to have grown by 27.5 per cent in the first half, largely driven by increases in “other manufacturing” and rice manufacturing. The sector is now projected to grow by 14.5 per cent this year.
– The services sector is estimated to have expanded by 7.3 per cent, driven largely by growth in financial and insurance activities and professional, scientific and technical services. The overall 2024 growth rate for services is now 7.7 per cent.
– The construction sector is estimated to have grown by 43.7 per cent in the first half of 2024 and continues to be driven by both the Public Sector Investment Programme (PSIP) and intensified private investments. The sector is now expected to grow by 27.2 per cent in 2024.
Balance of payments
The current account recorded a surplus of US$3,199.9 million, while the capital account registered a deficit of US$3,395.4 million. As a result, the overall balance of payments recorded a deficit of US$184.6 million at the end of the first half of 2024.
Total export earnings grew by 68.7 per cent to US$10,221.9 million at the end of June 2024, largely on account of higher earnings from crude oil exports, which amounted to US$9,401.6 million in the first half. Non-oil export earnings increased by 23.4 percent in the first half of this year. Earnings from rice and gold expanded by US$24.7 million, and US$12.2 million, respectively, with the latter reflecting favourable price developments.
Total import payments declined over the review period to US$3,245.1 million, largely attributed to the reduction in the importation of capital goods, as no new FPSO was imported.
Monetary developments – Domestic
Credit
At the end of the first half of 2024, net domestic credit stood at $773.1 billion, 20.3 per cent higher than the level at end of 2023.
Total credit to the private sector grew by 9 per cent from $376.1 billion at the end of December 2023, to $410 billion at the end of June 2024.
Credit to households rose by 6.8 per cent to $41 billion, with notable growth of 11.6 per cent observed in lending for motor cars.
Within credit to business enterprises, there was notable growth in lending for services, agriculture, and mining and quarrying, of 11.5 per cent, 12.3 per cent, and 29.3 per cent to $148.5 billion, $24.6 billion, and
$6.9 billion, respectively.
Real estate mortgages expanded by 9 per cent to $140.2 billion, driven by increases in mortgages granted for private dwellings and industrial and commercial properties.
INFLATION
During the first half of 2024, food prices continued to be impacted by a combination of domestic and global factors. These included disruptions in domestic supply chains and increased demand spurred by economic growth and population dynamics. Climate conditions also contributed to challenges in food production and distribution.
The Mid-Year Report documents the numerous initiatives by the government to raise disposable incomes of citizens and contain the pass through of imported inflation to domestic cost of living including:
• The 2024 Budgetary commitment of over $70 billion to sustain efforts to increase the disposable income available to citizens while ensuring their improved standard of living.
• Maintaining the zero per cent excise tax on petroleum products
• Extending freight charge reductions
• Continuance of the part-time job programme
Consumer prices rose by 1.6 per cent at the end of June, 2024 when compared with the end-2023 position, reflecting higher food prices, specifically fruits and fruit products, vegetables and vegetable products and cereals and cereal products. The 12-month inflation rate stood at 4 per cent at the end of June and is now projected to be 3.2 per cent for 2024.
The report highlights that across every single sector of government activity, implementation has moved apace including the buildout of government’s aggressive investment in energy and transport infrastructure and in social infrastructure, such as hospitals and schools; the further rollout of its housing and water programme, which is already well on its way to achieving the targets set at the start of the term of office; rapid expansion of technical and vocational training to ensure that as many Guyanese as possible are equipped with the skills to take up the jobs of today and tomorrow; and the upgrading of institutions and capabilities in the public safety and security sector.
“These and other initiatives, along with our strong policy stance in relation to attracting and stimulating private investment, have resulted in the economy continuing to achieve extraordinary rates of real economic growth.
This, in turn, means more economic opportunities for all Guyanese,” he further said, positing that ‘As we navigate the second half of 2024, our government remains firmly focused on ensuring the full implementation of Budget 2024, with the constant aim of improving the lives of every single Guyanese family and every single Guyanese person,” the Senior Finance Minister further noted.
Guyana to become exporter of cooking gas
GUYANA’S economy is said to have a new economic player with the introduction of cooking gas as an export after completion of the Wales gas-to-shore project, according to Vice President Dr Bharrat Jagdeo during a recent press conference.
In relation to the Wales gas-to-shore project, the Vice President highlighted that it will contribute to Guyana’s export of cooking gas.
“When the gas-to-energy project is completed, we will become an exporter of cooking gas; now we import all of our cooking gas,” he said.
The Vice President emphasised the project’s far-reaching impacts, particularly on electricity costs, stating that, “The price will plummet and the cost of electricity will become more stable. The price will
be cut by 50 per cent, so that the price of people’s electricity will go down.”
The considerable decline in energy expenditures is projected to bring advantages to households and businesses across Guyana.
In the previous year, the Vice President offered a more comprehensive analysis of the economic advantages associated with the Wales gas-to-shore project. It was disclosed that the sale of cooking gas alone in Guyana has the potential to generate an annual income ranging from $70 million to $100 million.
“If you look at the cooking gas, we will get, from drying the gas, and creating lean gas, we will be able to sell back and get the money,” Jagdeo explained.
This revenue stream is in addition to the expected savings on fuel imports, re-
–– Fulcrum LNG selected to construct vital infrastructure for Wales gas-to-shore project
duction in energy costs, and benefits to the manufacturing sector.
In addition to these advancements, Fulcrum LNG, an oil and gas company, revealed on Wednesday that it has been chosen by the Government of Guyana to oversee the design, financing, construction, and operation of essential gas infrastructure. The objective of this project is to offer gas-monetisation solutions and facilitate the advancement of upstream gas developments in Guyana.
Jesus Bronchalo, CEO of Fulcrum LNG, expressed enthusiasm about the project, sharing that, “We are honoured to be selected to undertake this strategic energy infrastructure project. This opportunity aligns perfectly with our mission to deliver innovative, reliable, and sustainable energy solutions to develop gas resources.”
The Fulcrum LNG project will involve the development of state-of-the-art gas-processing and modular, scalable facilities to produce LNG and NGLs/LPGs for both domestic use and for export to regional and global markets.
This infrastructure is designed to provide upstream developers with additional options for monetising their gas resources, potentially increasing the economic viability of current and future gas discoveries in the Guyana basin.
The gas-to-shore project underscores Guyana’s commitment to safely and efficiently developing its gas resources.
These developments are poised to transform Guyana’s natural gas sector, enhance energy security, and significantly contribute to the country’s economic growth.
Guyana’s digitisation push to increase comfort, security, economic growth
GUYANA is making significant strides in its national digitisation efforts, which promise to improve comfort, security, and business expansion across the country, Dr. Bharrat Jagdeo, General Secretary of the People’s Progressive Party (PPP) has said.
Dr. Jagdeo recently, highlighted that the government was moving closer to implementing its digitisation strategy, which will see the streamlining of several processes to be more efficient and enhance security.
With the highest level of biometrics and technology, the government, he noted, was in the first phase of rolling out its ‘Safe Guyana’ project, which will see 24-hour monitoring through smart cameras. These are intended to provide the authorities with the relevant intelligence needed to track criminal activities.
“There is a third project we have. It’s called a Safe Guyana project. That’s where we have now the first phase. There is a monitoring centre now with the high-resolution smart cameras in Region Four. Those have now been deployed to Regions Three and Six, the most populous regions outside of four.”
“These cameras that would give us valuable intelligence and allow us to intercept criminals should we need to do that,” he explained further, pointing out that these cameras will also have running predictive software to anticipate high crime areas so that security personnel can be deployed where necessary.
“We’re expanding this around the country.
“These would be able to do electronically
tracking [for example] vehicles to assist with giving, say, e-tickets without even having a policeman to stop someone for speeding,” he said.
A digital database will also be established and would be linked to information such as births, deaths, marriage records, criminal data on the databases where authorities have fingerprints.
“For example, a camera has facial recognition software on it, and we have now the biometrics of everyone in a database, you can find people easily…they could be recognised easily if there is any criminal activity.”
HEALTH DATABASE
Dr. Jagdeo also noted that the government was also working to establish its electronic patient record system.
“Once you have your record in this system, even in the public hospital you would be able to take that to a private hospital should you go there. The doctors from the private hospital if you do an X-ray, your entire history will be here.”
In this year’s fiscal package, funds were put aside to develop the electronic medical health record system.
Late last year, Health Minister, Dr. Frank Anthony, had revealed that the government was evaluating bids that were submitted for the provision of a comprehensive electronic health records system here.
At that time, he noted that they have been working assiduously on digital health and added that in 2024 they would set up a new department regarding digital health in the ministry.
PAPERLESS, FULLY AUTOMATED AIRPORT PROCESSES
Dr. Jagdeo also noted that fully automated and paperless processes will be implemented at Guyana’s airports by the end of this year. The new upgrade, Dr. Jagdeo said, will allow for pre-screening of passengers, and the use of automated gates, where travellers can simply swipe their identification documents for expedited entry.
He, however, noted that this system would also easily flag discrepancies.
The General Secretary pointed out that upon entry and screening, all necessary information will be recorded by the Guyana Revenue Authority (GRA).
“When you enter into the country, immediately that record goes to a government central database that will be able to track you if you come in on a short-term visa. So, if you overstay, you get flagged; if you come in on a particular visa, you can’t get a work permit,” Dr. Jagdeo said.
“We can know who is coming into our country. We can keep our people secure, and we can flag undesirables before they come home,” he added.
These initiatives, Dr. Jagdeo under-
scored, would allow citizens to have a greater level of comfort and security.
E-IDs
Simultaneously, the government is working to roll out its electronic- Identification Cards (E-ID); however, these documents, Dr. Jagdeo noted, will not entirely replace the ID cards that have been historically issued by the Guyana Elections Commission (GECOM).
“We decided not to touch the GECOM ID, because you would hear APNU say we want to control the issuance of that ID. GECOM can continue the issuance of its ID, but this [E-] ID will have some of the strongest security features in the world; it will have a modern chip,” he pointed out.
He further explained: “Guyanese will have a different colour ID than foreigners, but everyone would be required to have one of these IDs, because, without the ID, you would not be able to open a bank account or access some government services.”
According to Dr. Jagdeo, this new system will be crucial as the country continues to grow. It will allow for the authorities to track illegal immigrants.
“We do not spend enough time in a detail way talking about these issues. So, for example, on digitisation of the country and how that will be crucial for the future… this is crucial to changing Guyana and to the lives of our people.”
‘Boundless opportunities’
–inaugural Int’l Business Conference to bring major players ‘face to face’, provide platform for regional investments, stronger partnerships
GUYANA has significant economic potential in manufacturing, agro-processing, and the burgeoning oil-and-gas sector. Sustainable growth and international collaboration are crucial for harnessing this potential, and the upcoming International Business Conference (IBC) will bring investors and businesses face to face.
This is according to the Chairman of Action Invest Caribbean Dr. Vishnu Doerga, who, during an exclusive interview with the Guyana Chronicle, noted that the inaugural IBC, slated for October, will be the ideal platform to facilitate further regional investments, and strengthen partnerships.
The conference, which will bring together key players from the business communities in Guyana and Suriname, is slated to be held at the Marriott Hotel from October 15 to 17.
“The International Business Conference was really developed out of the missions that the Suriname-Guyana Chamber would have hosted in the past year. We would have done several missions from Suriname to Guyana and Guyana to Suriname,” Dr. Doerga related.
Dr. Doerga, who is also the Chairman of the Suriname-Guyana Chamber of Commerce (SGCC), further emphasised the importance of preserving natural resources, and promoting renewable sources, while highlighting the
need for Guyanese and Surinamese companies to further collaborate for mutual benefits.
“For a lot of big companies around the world, they see Guyana as a small country; they see Suriname as a small country. Both have fantastic potential.
“Guyana is already moving forward with turning that potential into productivity and income for the country. But when they see these two countries with massive opportunity, it becomes very interesting to them to do something across both countries,” he noted.
Currently, Guyana’s business landscape has been abuzz, as many major forums and expositions have been held, and several are in the planning stages.
Dr. Doerga noted that while many businesses would have participated in the foregoing events, the IBC provides a unique opportunity where businesses can be paired with partners and investors.
He noted that the conference’s agenda is set up in such way that key players could schedule their own meetings with investors and partners, and have their specific questions or queries addressed.
“This is the information people are really asking us for all the time. We will map out what the high priority opportunities are in Guyana, especially in manufacturing and
agro-processing, because they (investors) have a lot of capital. They have manpower, but they want to know, well, what can be done in Guyana, and we want to be able to present those opportunities to both sides; Guyanese and international companies,” Dr. Doerga explained.
The conference will be co-hosted by the SGCC, and the Guyana Manufacturing and Services Association (GMSA).
Dr. Doerga noted that while there is much talk of oil and gas in both countries, there are opportunities in other industries, and the manufacturing sector will be among the key topics of discussion, with particular focus on sustainability.
“I can say that 80 per cent of the oil-and gas supply chain in Guyana is already built. People already have their contracts; their contracts are three to five years. It’s not the easiest thing for a new entrant to now enter Guyana’s oil-and-gas supply chain. However, there’s so much opportunity everywhere else in the economy, and I think that will be the biggest outcome; to actually put our manufacturers or farmers or construction companies in contact with the companies that are looking to support them; are looking to join venture, are looking to develop things on a higher scale,” he stated.
It has been said that the IBC will focus on streamlining the ease of doing business and facilitating investments between international businesses and Guyana and Suriname in key sectors including, energy, infrastructure, finance, logistics, agriculture, and business support services.
The IBC is expecting over 100 speakers, and more than 500 delegates, with in excess of 15 conference sessions.
Added to this, several Memoranda of Understanding (MoUs) were signed after the launch of the conference last month.
The MoUs were signed among Guyana, Suriname, Canada and the Dominican Republic (DR) business chambers, and the Suriname Investment and Trade Agency to foster greater relations.
Chairman of Action Invest Caribbean Dr. Vishnu Doerga
