Originally Posted by Zed:
I am unsure to whom you were replying, Caribny. hiwever, the problems associated with the rice sugar and bauxite industries e sited for many years in which there was good growth.yes, the gold industry is negatively affected by the fall in price of gold and will be affecting the economy in a negative way. Regarding government debt, the general approach is to look at sustainability so the look at the debt as related to GDP. And, these do not necessarily lead to a slowdown. How much has this changed in the past few years. I am uncertain the government or anyone for that matter has a really good picture of consumer expenditure because of the large undocumented and underground economy. I mentioned in another thread that the Canadian custom officer said that a lot of currency was coming from Guyana. I know that this is anecdotal. I agree that retail prices are high, but has this dramatically increased over the past few months. People were purchasing just prior to the elections and then things slowed down for the elections and has not improved as yet from anecdotal sources.
When a nation is indebted and the treasury is empty public expenditures must be slashed, and this will cause an economic slow down.
The gold boom, and its multiplier effect hide other structural deficiencies within Guyana's economy. Now that lower prices, combined with the more accessible areas being mined out, gold production is dropping. So the economy is slowing.
If the productive sectors are not growing then how can secondary sectors like real estate or retain increase. There is a bubble in Guyana, and the slowing economy will burst it.
I don't know why the PPP isn't glad that they were voted out. Instead of being blamed as the economic slow down becomes more obvious, they will sit on the side lines and blame the coalition.
I do hope that the coalition has plans for this, but I some how suspect that they don't.
But to blame the coalition for the slow down is nonsense, as they haven't even been in power for 2 months. It takes at least a year for new policies to take effect. If by year end they have no policies in place, then they should take the blame.