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Home > TOP STORY > Economy expected to grow 3.4 % – Finance Minister – sees encouraging signs for recovery in many sectors
Minister of Finance Winston Jordan delivering his maiden budget presentation
Minister of Finance Winston Jordan delivering his maiden budget presentation

Economy expected to grow 3.4 % – Finance Minister – sees encouraging signs for recovery in many sectors

 

FINANCE Minister Winston Jordan yesterday reported that the economy is expected to grow 3.4 % at the end of 2015, below the ambitious 5.3 % that was predicted by the former Administration.
Delivering his maiden budget presentation, Jordan explained that growth in the first half of 2015, substantially a period when the former Administration controlled the economy, was a miniscule 0.9 %. “The failure of the economy to realise the planned growth rate in 2014, and the below par performance in the first half of this year, is conclusive evidence that the economy had slowed down long

 Finance Minister Winston Jordan with Prime Minister Moses Nagamootoo, at right, and Minister of Governance Minister Raphael Trotman at Parliament yesterday

Finance Minister Winston Jordan with Prime Minister Moses Nagamootoo, at right, and Minister of Governance Minister Raphael Trotman at Parliament yesterday

before our Government’s entry into office. There are, however, encouraging signs that there will be recovery in many sectors that will allow us to achieve the 3.4 % revised growth rate,” the Finance Minister told the House.
He noted that over the last two months, the Government has been assailed with talk of a slump in the economy, with some commentators attributing blame for this on the new APNU+AFC Administration.
Slow down
“We have all heard and read the dire warnings of some previous officials of the former Administration pontificating on the slowdown in the economy, as if this occurred since our assumption to office; as though they did not recognise the clear slowing of growth last year when they were in office, as borne out by the GDP [Gross Domestic Product] growth figures; as if they did not know that sugar was broke and needed a substantial lifeline from the Government; as if they did not know that the Venezuelan rice deal would not have continued beyond this year; as if the they did not know that their proroguing and dissolving the Parliament and their post-election antics would heighten uncertainty, causing businesses to withhold investment. And so the stories continued. I had to take a moment to review the realities of the previous year before proceeding to set out what can now be realistically expected for this year,” the Minister said.
Mr Jordan said on assumption of office in mid-May, there was significant preparatory work done on the expectations for the economy’s performance this year. This, he said, had been accomplished as early as the end of January.
The initial profile of the economy showed that the previous Government was projecting a resurgence in growth to 5.3 %, following the 3.8 % achievement last year. Except for four sectors – sugar, bauxite, gold and wholesale and retail – modest growth was targeted for all sectors of the economy.
In the World Economic Outlook update, given in July 2015, the global economy is forecast to grow by 3.3 % in 2015.
Setback
This, the Finance Minister said, represents a slight reduction on 2014’s growth, as a consequence of a setback in economic activity, mostly in North America, in the first quarter. An unexpected contraction in output in the United States had spillover effects in Canada and Mexico. Additionally, one-off factors such as the harsh winter weather and port closures, as well as a strong downsizing of capital expenditure in the oil sector, contributed to the weakening of US economic activity.
But, he stressed, in spite of this small decline, the underlying drivers of global growth remain intact.
Meanwhile, at the end of 2014, Guyana’s total external debt stock stood at US$1.2 billion. Guyana was able to secure debt relief from the Caricom Multilateral Clearing Facility in the sum of US$35.9 million, under the enhanced Heavily Indebted Poor Countries (HIPC) initiative.
Jordan said two debt compensation agreements were concluded with Venezuela, for a total value of US$124.5 million.
Total external debt service amounted to US$50.9 million, 10.9 % higher than in 2013, owing to increased principal and interest payments to multilateral creditors, especially, he said, pointing out that the domestic debt stock stood at $78.4 billion at the end of 2014.

By Tajeram Mohabir

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That is mere talk as they cannot say what sectors will improve. 

Is it rice  and sugar.  The coconut industry is dead.  The Manufacturing sector needs a miracle.  The have a national debt to pay off.  They are raising salaries and no extra revenues are being collected.   

They are again lying to  the Guyanese people, 

R
Originally Posted by Ramakant-P:

That is mere talk as they cannot say what sectors will improve. 

Is it rice  and sugar.  The coconut industry is dead.  The Manufacturing sector needs a miracle.  The have a national debt to pay off.  They are raising salaries and no extra revenues are being collected.   

They are again lying to  the Guyanese people, 

Drunky, now you are saying that PPP lied when they claimed the profile of the economy was projecting a resurgence in growth to 5.3 %.

 

Mitwah
Originally Posted by Mitwah:
Originally Posted by Ramakant-P:

That is mere talk as they cannot say what sectors will improve. 

Is it rice  and sugar.  The coconut industry is dead.  The Manufacturing sector needs a miracle.  The have a national debt to pay off.  They are raising salaries and no extra revenues are being collected.   

They are again lying to  the Guyanese people, 

Drunky, now you are saying that PPP lied when they claimed the profile of the economy was projecting a resurgence in growth to 5.3 %.

 

Which word you don't understrand?  These were lies the AFC dirty Indians were telling Guyanese people before the election. You also criticized them for the same things.  Now they will fry in their own shyte, you along with them.

R

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