Skip to main content

May 24, 2016 Source

Minister of Finance Winston Jordan and Bank of Guyana Governor Dr Gobind Ganga yesterday insisted that there is no sluggishness in the economy, while saying that the numbers show the economy is doing well and is projected to do even better by year end.

“It was suggested that let the IMF [International Monetary Fund] come and let them tell us. Well, the IMF was here about two or three weeks ago…and they said… that generally the economy is in good shape. That the economy grew by 3% last year and that it is projected to grow by at least 4% this year. This clearly cannot be an economy that is on the decline, is sluggish and so on,” Jordan told a press conference yesterday.

This pronouncement comes at a time when the opposition has publicly said that there is a slowdown in the economy and Jordan has acknowledged that there is reduced spending due to a dent in the pillars of the parallel economy.

Opposition leader Bharrat Jagdeo has expressed the view that government does not have any plans to develop the economy and that after one year of APNU-AFC in office, Guyanese are worse off.

Finance Minister Winston Jordan
Finance Minister Winston Jordan

“It is not a doomsday scenario, we are doing reasonably well and we will continue to do reasonably well if we continue to manage the economy in a way that doesn’t allow it to deteriorate,” Jordan told reporters in the Ministry’s Boardroom.

Despite his talk of the economy doing well, Jordan had said last week that Guyana is currently experiencing a reduction in free spending due to a decrease in illegal activities, including narco trafficking. Jordan, during an interview with the Government Information Agency (GINA), had agreed that the economy was not as buoyant as it needs to be, while noting that illicit drugs and other illegal activities had helped create a parallel economy.

“So, the more that you go after that, and the more it will miniaturise, that is the less free spending you will see… it’s going to take a time for the economy to get comfortable with that, but in the meanwhile we will be putting other incentives to stimulate growth in the economy, but one good thing we can say, the economy will grow,” he was quoted as saying.

The minister yesterday said that he has noted continued suggestions about “sluggishness in the economy, about slowing down and the economy is not doing well” and he affirmed the government’s belief that it is in “good shape.” He said that many doubted government and the numbers for economic growth which it put forward but the IMF has since confirmed this.

Jordan said the projected 4% growth is close to the average growth rate that the economy would have achieved over the past decade. “So within the space of a year of us coming here, we would have been able to reverse what seemed to be a decline of 3% last year.  “Decline in the sense that the growth year for last year was 3% compared to say 2014, where I think it was in excess of 4% and previous years where it averaged around that,” he said.

The minister said too that despite all the issues government would have faced after taking office last May, “we were able to do a range of things,” but he added that the newspapers have failed to be balanced on the issue as comments were sought “from the usual suspects.”

“Here you can see in newspaper where just a one-sided view is given and [after] a whole year of achievements you have a couple of people, all they do is gripe whole day,” he said, in an apparent reference to Stabroek News.

Meanwhile, Dr Ganga, in brief remarks, said that inflation has been constrained and there is an estimated .5% deflation for the first quarter of this year. He said that Guyana is seeing a net purchase of foreign exchange to the tune of just over US$25 million, which has resulted in a “relatively unchanged exchange rate.”

He said that on the current account, the bank is seeing a significant movement in terms of moving from a deficit of US$73.4 million to a surplus of about US$51.5 million. With regard to the capital account, he said the bank would have seen movement from a deficit of US$51.7 million to US$14.8 million.

Reserves, he added, have increased from $598 million at the end of 2015 to about $619 million at the end of March 2016.

“…We are seeing some improvement in terms of the overall balance. We have seen a marginal decline in external debt and a marginal increase in domestic debt,” he said, while adding that there was a “flat movement” for the financial sector.

“All in all, the financial system is quite healthy, [and] sufficiently capitalised,” he said. “Basically, we have seen an economy with very sound macroeconomic indicators (and) good confidence in the system to move forward,” he added.

 

Consumers not getting reductions

Jordan, speaking on government’s successes over the last year, noted that salaries were increased by more than 5%, pensions were increased by a “substantial amount,” there was a VAT reduction on various items, incentives to the gold sector, electricity tariff reductions, gasoline price reductions and increases in the income tax threshold. He pointed out that none of this was given in the one year review done by the newspaper.

He said that one now has to investigate if the consumers are actually benefiting from the incentives given. “Are you, the consumer, getting the benefit…? With the reduced gasoline prices, are you getting the benefit of a reduced bus fare? With reduced electricity prices, which is good for the manufacturing sector, have you seen any reduction in the prices of any one of these locally produced goods?” he asked, while adding that the government doesn’t see a reflection of the partnerships it pushed.

“We can’t go and hold the hand of a manufacturer and say listen, we have just reduced electricity by x percent why don’t you… that pressure also has to come from other members of society, that, ‘look, the government has just reduced electricity prices, why you are not reducing your prices of your commodities? Instead of having the pressure groups coming back to government for even more reductions,” he said

Jordan said government will look again as to how it will manage incentives so that the consumer gets the benefit of the reduction. “As it stands, at the moment the consumer is not getting these reductions that we have been able to do at great cost,” he said.

Jordan also said that government has been working to enhance the country’s business climate. “We haven’t been sitting down on our laurels. Since we came into power, I have been beating the doors down at the IDB, CDB and other multilateral institutions to get our programme with them going,” he noted.

 

Loans for key areas

According to him, the government has been able to complete some strategic approaches to the formulation of loans for the 2016/17 period. He informed that government is looking to get a number of loans in key areas.

He mentioned the Agri Development Loan, which will deal with agri diversification and livestock development in the intermediate savannahs. Jordan said that government is also looking for a Business Development Loan to improve the way business is done in Guyana. He said that government wants to improve the country’s rating on the World Bank’s Doing Business Index. He explained that this loan will look at the various aspects of improving the business climate here.

“When I met with the private sector during the last budget, they said that one of the hindrances to exports was that we didn’t have a properly certified lab to export to various places. Well, we are discussing as part of the Business Development Loan—the development of a state-of-the-art lab in which all of these activities could take place,” he noted.

In terms of partnership with the Caribbean Development Bank (CDB), he said that government is looking at the Single Window Automated Processing System (SWAPS) project which had started under the previous government and had either been abandoned or was incomplete. “We are looking to get assistance,” he said, while noting that government is also pursuing a loan for the justice sector for its improvement, particularly to address the backlog of cases, updating legislation and modernisation of the judiciary.

As regards the health sector, he said government hopes to get a loan which will target the reduction in maternal, child and infant mortality, a modern and centralised place for baby care and improving institutional capacity.

Government is also seeking financial assistance for suicide prevention, he said.

Jordan informed that with regard to the World Bank, an interim country engagement note has been completed and this would allow government to access resources for the University of Guyana, which will included the construction of new labs, lecture halls, library, improvement to the management information system and rehabilitation of the sewage system.

He also spoke of a programme for the improvement of the education sector that will look at the education curriculum from the primary to university level and a national payment system to remove Guyana’s use of paper money as a means of transacting business.

Jordan said too that a project to revamp and improve long-term planning in the country should get underway in the second half of the year.

He spoke of government’s vision of improving the water and sanitation sector, inclusive of water treatment plants and sanitary landfills. Clean energy, particularly solar energy, will also be addressed, with Bartica being the first clean energy driven town, he added.

Jordan told reporters that under the International Fund for Agriculture Development, government is looking at a rural and hinterland development project geared towards agro processing and the development of small scale agriculture business, particularly in the hinterland regions of the country.

As regards the coastland, he said government is seeking a loan to pilot small scale agri-development in several areas inclusive of Ithaca, Buxton, Triumph and Mocha.

Replies sorted oldest to newest

ba$eman posted:

I was just with some visiting relatives from Guyana, business people.  They think Jordan high on something!!

Yes, every thing collapsed since blackman tek over.

On a more serious note.   The economy might be growing in real terms, but this is due to expansion of the gold sector by the Canadians. I am sure that their operations are capital intensive, so cannot absorb the small miners who cannot compete in todays lower prices.

So the spill over effect into the economy is less. In fact in the boom days gold is what saved many in Linden, G/T, and other places, and now that fewer are engaged in the industry less is available.

The "growth" under the PPP was merely oligarchs engaging in speculative ventures in retail and real estate, in order to launder their money derived from who knows where.  This wasn't a sign of a healthy economy, so you really ought to cease your foolishness.

Guyana had a bubble economy, and its gradual demise began since 2014, when mortgage defaults began to increase.  The banking sector was also highly liquid, suggesting that it wasn't investing in the productive sectors of the economy through loans.

Seriously neither the PPP nor the coalition have anything to boast about.

FM
caribny posted:
ba$eman posted:

I was just with some visiting relatives from Guyana, business people.  They think Jordan high on something!!

Yes, every thing collapsed since blackman tek over.

On a more serious note.   The economy might be growing in real terms, but this is due to expansion of the gold sector by the Canadians. I am sure that their operations are capital intensive, so cannot absorb the small miners who cannot compete in todays lower prices.

So the spill over effect into the economy is less. In fact in the boom days gold is what saved many in Linden, G/T, and other places, and now that fewer are engaged in the industry less is available.

The "growth" under the PPP was merely oligarchs engaging in speculative ventures in retail and real estate, in order to launder their money derived from who knows where.  This wasn't a sign of a healthy economy, so you really ought to cease your foolishness.

Guyana had a bubble economy, and its gradual demise began since 2014, when mortgage defaults began to increase.  The banking sector was also highly liquid, suggesting that it wasn't investing in the productive sectors of the economy through loans.

Seriously neither the PPP nor the coalition have anything to boast about.

Hey banna, you deh in Brooklyn or somewhere far from Guyana.  I take their word over yours any day.  These people are multi generational Guyanese business people so your hot air carries -0- weight vs what they say!

FM
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

Because big salary Jordan and his peddler Caribj says so!!  Screw the opinions of real people, especially if they are Indians.

FM
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.

Mars

Opposition leader Bharrat Jagdeo has expressed the view that government does not have any plans to develop the economy and that after one year of APNU-AFC in office, Guyanese are worse off.
Finance Minister Winston Jordan
Finance Minister Winston Jordan

“It is not a doomsday scenario, we are doing reasonably well and we will continue to do reasonably well if we continue to manage the economy in a way that doesn’t allow it to deteriorate,” Jordan told reporters in the Ministry’s Boardroom.

May 24, 2016 Source

Perhaps, he is hoping that the the economy will not continue to deteriorate under their administration.

FM
ba$eman posted:
caribny

Hey banna, you deh in Brooklyn or somewhere far from Guyana.  I take their word over yours any day.  These people are multi generational Guyanese business people so your hot air carries -0- weight vs what they say!

Hmmm.  The same day that Granger assumed office your "friends" were already screaming "black man a tek over".   You then boasted that these Indian and Portuguese racists were going to ensure that "blackman fail".

Your friends' opinions are of no interest to me.

FM
Demerara_Guy posted:

Opposition leader Bharrat Jagdeo has expressed the view that government does not have any plans to develop the economy and that after one year of APNU-AFC in office, Guyanese are worse off.
Finance Minister Winston Jordan
Finance Minister Winston Jordan

“It is not a doomsday scenario, we are doing reasonably well and we will continue to do reasonably well if we continue to manage the economy in a way that doesn’t allow it to deteriorate,” Jordan told reporters in the Ministry’s Boardroom.

May 24, 2016 Source

Perhaps, he is hoping that the the economy will not continue to deteriorate under their administration.

Dunno why they don't just free up the drug runnings and let the economy boom.

A
Mars posted:
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.

Well I am hearing for people who were fervent supporters of the coalition that the economy has slowed from the point of view of the average person. Even the vendors complained.

I think that what we can debate is the reasons why.  While there is growth at the macro level, it isn't getting down to the man in the street.  The Canadians spend their money, pay their fees and royalties, but I suspect the multiplier effect isn't that high, so there is less seepage into the general economy.

This isn't to suggest that the PPP did anything to support the economy between 2008-2014.  Gold, remittances, and money laundering all created a bubble economy, that was going to bust as soon as gold prices dropped.

Maybe it isn't as bad as it could be, when we look at Suriname, with a similar economy, which definitely isn't doing 3%.

FM
caribny posted:
Mars posted:
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.


Maybe it isn't as bad as it could be, when we look at Suriname, with a similar economy, which definitely isn't doing 3%.

So tell us, how was the PNC so quickly able to replace all the drug money which drove growth under the PPP?

FM
caribny posted:
Mars posted:
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.

Well I am hearing for people who were fervent supporters of the coalition that the economy has slowed from the point of view of the average person. Even the vendors complained.

I think that what we can debate is the reasons why.  While there is growth at the macro level, it isn't getting down to the man in the street.  The Canadians spend their money, pay their fees and royalties, but I suspect the multiplier effect isn't that high, so there is less seepage into the general economy.

This isn't to suggest that the PPP did anything to support the economy between 2008-2014.  Gold, remittances, and money laundering all created a bubble economy, that was going to bust as soon as gold prices dropped.

Maybe it isn't as bad as it could be, when we look at Suriname, with a similar economy, which definitely isn't doing 3%.

The real economy is just about the same as nothing drastic has changed from the PPP days to now. Drugs money flowing freely is down but if you want the crime situation to improve, the drug problem has to be tackled. You can't have it both ways. If you let drugs run out of control like in Jagdeo days, crime will run out of control. Remittances are down because less drugs money is being laundered and this trend started a couple of years ago. A significant amount of remittances is drugs money being legally washed in the system.

Mars
ba$eman posted:
.

So tell us, how was the PNC so quickly able to replace all the drug money which drove growth under the PPP?

The consensus seems to be that the PPP drug lords are in hiding, so are not spending money.

The IMF reported that growth came mainly from FDI, largely from the Canadian gold interests.

Life must be hard for all of Jaggie's drug dealing friends who no longer have carte blanche to traffic, now that the DEA and others, are monitoring them.

FM
caribny posted:
ba$eman posted:
.

So tell us, how was the PNC so quickly able to replace all the drug money which drove growth under the PPP?

The consensus seems to be that the PPP drug lords are in hiding, so are not spending money.

The IMF reported that growth came mainly from FDI, largely from the Canadian gold interests.

Life must be hard for all of Jaggie's drug dealing friends who no longer have carte blanche to traffic, now that the DEA and others, are monitoring them.

That was not my question.  You/PNC claimed the economy grew under the PPP due to drugs. Now PNC in power, DEA in Guyana, drug money is history.  Now tell us how the PNC was able to mitigate this in one year!!  

FM
Mars posted:
caribny posted:
Mars posted

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.

Well I am hearing for people who were fervent supporters of the coalition that the economy has slowed from the point of view of the average person. Even the vendors complained.

I think that what we can debate is the reasons why.  While there is growth at the macro level, it isn't getting down to the man in the street.  The Canadians spend their money, pay their fees and royalties, but I suspect the multiplier effect isn't that high, so there is less seepage into the general economy.

This isn't to suggest that the PPP did anything to support the economy between 2008-2014.  Gold, remittances, and money laundering all created a bubble economy, that was going to bust as soon as gold prices dropped.

Maybe it isn't as bad as it could be, when we look at Suriname, with a similar economy, which definitely isn't doing 3%.

The real economy is just about the same as nothing drastic has changed from the PPP days to now. Drugs money flowing freely is down but if you want the crime situation to improve, the drug problem has to be tackled. You can't have it both ways. If you let drugs run out of control like in Jagdeo days, crime will run out of control. Remittances are down because less drugs money is being laundered and this trend started a couple of years ago. A significant amount of remittances is drugs money being legally washed in the system.

Now, if drug money down, how did the economy remain the same when Drug money was the fuel?  If crime would be out of control should drug run freely like under the PPP, they home come there is a big upsurge in crime since May 2015??

Bais, alyuh tying alyuh self up in knots trying to square the circle in alyuh heads.

FM
ba$eman posted:
Mars posted:
caribny posted:
Mars posted

What do you expect PPP soupies to say? They are peddling that lie so that it sinks in for 2020.

Well I am hearing for people who were fervent supporters of the coalition that the economy has slowed from the point of view of the average person. Even the vendors complained.

I think that what we can debate is the reasons why.  While there is growth at the macro level, it isn't getting down to the man in the street.  The Canadians spend their money, pay their fees and royalties, but I suspect the multiplier effect isn't that high, so there is less seepage into the general economy.

This isn't to suggest that the PPP did anything to support the economy between 2008-2014.  Gold, remittances, and money laundering all created a bubble economy, that was going to bust as soon as gold prices dropped.

Maybe it isn't as bad as it could be, when we look at Suriname, with a similar economy, which definitely isn't doing 3%.

The real economy is just about the same as nothing drastic has changed from the PPP days to now. Drugs money flowing freely is down but if you want the crime situation to improve, the drug problem has to be tackled. You can't have it both ways. If you let drugs run out of control like in Jagdeo days, crime will run out of control. Remittances are down because less drugs money is being laundered and this trend started a couple of years ago. A significant amount of remittances is drugs money being legally washed in the system.

Now, if drug money down, how did the economy remain the same when Drug money was the fuel?  If crime would be out of control should drug run freely like under the PPP, they home come there is a big upsurge in crime since May 2015??

Bais, alyuh tying alyuh self up in knots trying to square the circle in alyuh heads.

Gold royalties have almost doubled since May 2015. In part, due to better policing, less smuggling and also the large new mine coming on stream. Sugar and bauxite had higher production numbers in 2015 vs 2014 resulting in increased revenues. There has been increased government spending in the 2015 and 2016 budgets. The new government is doing a better job of collecting revenues from all those businessmen who had a free ride during the PPP days. More taxes collected has resulted in more money being available for the government to spend on large projects hence the larger budgets compared to PPP years. 

Initially, crime did not change much as it took a while for the policing systems to be improved after May 2015. Recruits are being hired but it takes a few months until they graduate from training school and can be put onto the streets. The joint operation between the army and police has helped to slow crime this year. Gradually, serious crime is showing a downward trend as reflected in the 19% decrease during the first quarter of 2016 vs the same period in 2015. Crimes are also being solved at a better rate vs PPP years when people were being whacked and no one ever arrested. The crime chief should be commended as he has made a huge impact in the crime solving area.

Mars
Last edited by Mars

The increase in Gold royalties provided by Raphael Trotman; as noted in the media; were speculations and also were never verified as correct.

FM
Last edited by Former Member
Demerara_Guy posted:

The increase in Gold royalties provided by Raphael Trotman; as noted in the media; were speculations and also were never verified as correct.

Are you trying to tell me that the Gold Board cannot tell us how much royalties they collected over a given period of time?

Mars
ba$eman posted:
caribny posted:
 

The consensus seems to be that the PPP drug lords are in hiding, so are not spending money.

The IMF reported that growth came mainly from FDI, largely from the Canadian gold interests.

Life must be hard for all of Jaggie's drug dealing friends who no longer have carte blanche to traffic, now that the DEA and others, are monitoring them.

That was not my question.  You/PNC claimed the economy grew under the PPP due to drugs. Now PNC in power, DEA in Guyana, drug money is history.  Now tell us how the PNC was able to mitigate this in one year!!  

Now if you aren't going to read what I write don't comment. This is from the IMF, not Jordan, so go argue with them if you disagree.

Have a mental breakdown telling the IMF that they lie, because "since blackman come in de economy supposed to drap 20%, because blackman cyan even run a mauby shap".

FM
Demerara_Guy posted:

The increase in Gold royalties provided by Raphael Trotman; as noted in the media; were speculations and also were never verified as correct.

Really? How do you know?

Gold royalties are up because the Canadians are producing.  It really isn't a mystery.

And I have said.  There isn't a contradiction between the economy growing and popular perceptions that it isn't.  The small gold producers have been squeezed out by dropping prices, and by being pushed out of the best fields.  The money they made went straight into the economy, as these were poor people, so spend every bit that they earn.

Capital intensive operations will hire fewer, source less of their supplies in Guyana, and so the main benefit to GY will be the royalties. Hence there is less of a direct connect with the average Guyanese, especially since this gov't seems prone not to increase the national debt, and to reduce public sector deficits.  This according to the IMF, which is a more credible source than that PPP rag called the Guyana Times.

Now my concern with this gov't is that its running with a CFO and no VP Marketing. Its all well and good to manage the public purse well, but if there isn't economic transformation, then exports will not grow, and ultimately the economy stagnates.

It will be nice if the PPP frauds (and their brown KKK buddies (no more bai, as Bibi is now a card carrying member) grew some brains. Yes there is much to criticize about the coalition gov't.  But descending into brawling behavior like street hoes doesn't boost their credibility.

FM
Last edited by Former Member

The Private Sector Commission on Thursday called on government to take several steps to pull Guyana out of economic doldrums.

Private Sector calls on govt to “inspire” investors

confidence

 
Minister of Business, Dominic Gaskin addressing the Private Sector Commission's Annual General Meeting.

Minister of Business, Dominic Gaskin addressing the Private Sector Commission’s Annual General Meeting.

The Private Sector Commission on Thursday called on government to take several steps to pull Guyana out of economic doldrums.

Addressing the Annual General Meeting (AGM) held at the Marriott Hotel, Battery Road, Kingston, the Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud called on government to send clear signals to investors. “We want the government to share their economic vision and economic plan. Very little is known at this stage except in the budget speeches so we hope tat we can hear nore about that so that we can inspire confidence in investors,” he said.

Persaud could not say specifically how employment could be created, but said there was need for at least 25,000 jobs. Other suggestions include the need for companies

Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud

Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud

to improve their competitiveness, focus on export-led growth to lower the trade deficit, improve standards, increase productivity and capture niche markets.  “We need to innovate more, spend more and research better,” he said.

Using data from the Bank of Guyana and other official sources,  Persaud said the growth rate has been slowing down to a projected 3 percent for 2016 and aggregate expenditures declined by about US$200 million last year.

Persaud also called for more engagements between government and the business community to understand each other better and share ideas. “Not much engagement is taking place, at least with the Private Sector Commission. Much more needs to be taking place to inspire confidence,” he said.

psc_gdpIn his address to the PSC’s AGM,  the Minister of Business said there was need for a proper avenue for the government and the private sector to engage each other. “I believe that there is a valuable partnership that can be forged between the public and private sector and right now what is needed is a structure that provides an effective mechanism for a continued public-private dialogue aimed at building a stronger and more attractive economy that can support the development of diverse industries and reduce our reliance on primary exports,”  he said.

The PSC official further urged government to spend more of the monies allocated to the Public Sector Investment Programme (PSIP), against the backdrop that GYD$20 million on PSIP projects were not spent last year. At the same time, he cited the need for contractors to complete their works on time and at the desired quality.

Persaud appealed to Minister of Business, Dominic Gaskin to do more to improve Guyana’s conditions to do business and improve the efficiency and effectiveness of public services. Also touched on was the need to “rethink” the outdated regulations and their enforcement because they have been affecting businesses.psc_impexp

Gaskin conceded that the economy has slowed down but said the sluggishness did not begin when the APNU+AFC coalition assumed office on May 11, 2015.  Attributing Guyana’s average 4 percent economic growth in recent years to mainly good rice and gold prices as well as “stained money,” he said government had no control over global demand and commodity prices.  Gaskin said the most government could do is work with the private sector to create a better business environment. “The effort has to be a joint effort and our Government is committed to partnering with the private sector to bring about these improvements. I have no reason to believe that there is any reluctance on the part of the private sector to work with our government towards the achievement of common goals and objectives,” he said.

 

alena06
caribny posted:
Demerara_Guy posted:

The increase in Gold royalties provided by Raphael Trotman; as noted in the media; were speculations and also were never verified as correct.

Really? How do you know?

Gold royalties are up because the Canadians are producing.  It really isn't a mystery.

The man should know. His gold smuggling revenues have been drastically reduced. Less smuggling means less revenue for the smugglers.

Mr.T
Mr.T posted:
caribny posted:
Demerara_Guy posted:

The increase in Gold royalties provided by Raphael Trotman; as noted in the media; were speculations and also were never verified as correct.

Really? How do you know?

Gold royalties are up because the Canadians are producing.  It really isn't a mystery.

The man should know. His gold smuggling revenues have been drastically reduced. Less smuggling means less revenue for the smugglers.

I do detect that the angst that we see from the PPP frauds, is that their pockets are hurting, as Guyana no longer is theirs to abuse.

FM
alena06 posted:

The Private Sector Commission on Thursday called on government to take several steps to pull Guyana out of economic doldrums.

Private Sector calls on govt to “inspire” investors

confidence

 
Minister of Business, Dominic Gaskin addressing the Private Sector Commission's Annual General Meeting.

Minister of Business, Dominic Gaskin addressing the Private Sector Commission’s Annual General Meeting.

The Private Sector Commission on Thursday called on government to take several steps to pull Guyana out of economic doldrums.

Addressing the Annual General Meeting (AGM) held at the Marriott Hotel, Battery Road, Kingston, the Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud called on government to send clear signals to investors. “We want the government to share their economic vision and economic plan. Very little is known at this stage except in the budget speeches so we hope tat we can hear nore about that so that we can inspire confidence in investors,” he said.

Persaud could not say specifically how employment could be created, but said there was need for at least 25,000 jobs. Other suggestions include the need for companies

Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud

Chairman of the PSC’s Finance and Economic sub-committee, Ramesh Persaud

to improve their competitiveness, focus on export-led growth to lower the trade deficit, improve standards, increase productivity and capture niche markets.  “We need to innovate more, spend more and research better,” he said.

Using data from the Bank of Guyana and other official sources,  Persaud said the growth rate has been slowing down to a projected 3 percent for 2016 and aggregate expenditures declined by about US$200 million last year.

Persaud also called for more engagements between government and the business community to understand each other better and share ideas. “Not much engagement is taking place, at least with the Private Sector Commission. Much more needs to be taking place to inspire confidence,” he said.

psc_gdpIn his address to the PSC’s AGM,  the Minister of Business said there was need for a proper avenue for the government and the private sector to engage each other. “I believe that there is a valuable partnership that can be forged between the public and private sector and right now what is needed is a structure that provides an effective mechanism for a continued public-private dialogue aimed at building a stronger and more attractive economy that can support the development of diverse industries and reduce our reliance on primary exports,”  he said.

The PSC official further urged government to spend more of the monies allocated to the Public Sector Investment Programme (PSIP), against the backdrop that GYD$20 million on PSIP projects were not spent last year. At the same time, he cited the need for contractors to complete their works on time and at the desired quality.

Persaud appealed to Minister of Business, Dominic Gaskin to do more to improve Guyana’s conditions to do business and improve the efficiency and effectiveness of public services. Also touched on was the need to “rethink” the outdated regulations and their enforcement because they have been affecting businesses.psc_impexp

Gaskin conceded that the economy has slowed down but said the sluggishness did not begin when the APNU+AFC coalition assumed office on May 11, 2015.  Attributing Guyana’s average 4 percent economic growth in recent years to mainly good rice and gold prices as well as “stained money,” he said government had no control over global demand and commodity prices.  Gaskin said the most government could do is work with the private sector to create a better business environment. “The effort has to be a joint effort and our Government is committed to partnering with the private sector to bring about these improvements. I have no reason to believe that there is any reluctance on the part of the private sector to work with our government towards the achievement of common goals and objectives,” he said.

 

This is the type of analysis that I would expect from baseman and Bibi. But baseman is too racist, and Bibi to dotish.

Yes Gaskin is correct when he says that Guyana is a commodity producer, dependent on prices over which it has no control. It is in fact the gov'ts role to work with both the local private sector, as well as foreign investors to move Guyana beyond this, by pushing production up the value chain.  And as the PSC spokesman said, identifying niche markets, where Guyana's small scale is less of a disadvantage.

Its a pity that this isn't the language which Jagdeo speaks.  Running around looking for photo ops, screaming "blackman a starve ahbe", and pushing tired and old ideas like the Venezuela rice market, isn't good enough.

FM
Billy Ram Balgobin posted:
Mr.T posted:

Jagdeo only knows how to push drugs.

Report it to the DEA.  They know many naive' nuts like you  are out there to hurt your enemies by framing them.

The DEA already knows that.

Mr.T
ba$eman posted:
Billy Ram Balgobin posted:

Everyone who is coming from Guyana on visit to NY are saying the economy has slowed down and things are getting worse.  Why should we not believe at least a little of what they have to say.

Because big salary Jordan and his peddler Caribj says so!!  Screw the opinions of real people, especially if they are Indians.

I believe that I did respond to this, but once you see it comes from the mouth of a black man you are too racist to read it.

I suggest that you desist from mentioning me, or responding to me, if you don't read my posts!

FM

Jordan seems to be heading in Greenidge direction to give excellent economic forecast when the country is in deep dodo. Guyana is heading into another sinkhole again. 

FM
Last edited by Former Member
Cobra posted:

Jordan seems to be heading in Greenidge direction to give excellent economic forecast when the country is in deep dodo. Guyana is heading into another sinkhole again. 

So aside from "black man cannot run cake shop", what is the coalition not doing that the PPP did do.

Don't say rice or sugar, because the PPP did severe damage to those industries.  Recall early last year when the rice farmers were rioting over the fact that the PPP wasn't paying them on time.

FM
Django posted:

May 24, 2016 Source

Minister of Finance Winston Jordan and Bank of Guyana Governor Dr Gobind Ganga yesterday insisted that there is no sluggishness in the economy, while saying that the numbers show the economy is doing well and is projected to do even better by year end.

“It was suggested that let the IMF [International Monetary Fund] come and let them tell us. Well, the IMF was here about two or three weeks ago…and they said… that generally the economy is in good shape. That the economy grew by 3% last year and that it is projected to grow by at least 4% this year. This clearly cannot be an economy that is on the decline, is sluggish and so on,” Jordan told a press conference yesterday.

This pronouncement comes at a time when the opposition has publicly said that there is a slowdown in the economy and Jordan has acknowledged that there is reduced spending due to a dent in the pillars of the parallel economy.

Opposition leader Bharrat Jagdeo has expressed the view that government does not have any plans to develop the economy and that after one year of APNU-AFC in office, Guyanese are worse off.

Finance Minister Winston Jordan
Finance Minister Winston Jordan

“It is not a doomsday scenario, we are doing reasonably well and we will continue to do reasonably well if we continue to manage the economy in a way that doesn’t allow it to deteriorate,” Jordan told reporters in the Ministry’s Boardroom.

Despite his talk of the economy doing well, Jordan had said last week that Guyana is currently experiencing a reduction in free spending due to a decrease in illegal activities, including narco trafficking. Jordan, during an interview with the Government Information Agency (GINA), had agreed that the economy was not as buoyant as it needs to be, while noting that illicit drugs and other illegal activities had helped create a parallel economy.

“So, the more that you go after that, and the more it will miniaturise, that is the less free spending you will see… it’s going to take a time for the economy to get comfortable with that, but in the meanwhile we will be putting other incentives to stimulate growth in the economy, but one good thing we can say, the economy will grow,” he was quoted as saying.

The minister yesterday said that he has noted continued suggestions about “sluggishness in the economy, about slowing down and the economy is not doing well” and he affirmed the government’s belief that it is in “good shape.” He said that many doubted government and the numbers for economic growth which it put forward but the IMF has since confirmed this.

Jordan said the projected 4% growth is close to the average growth rate that the economy would have achieved over the past decade. “So within the space of a year of us coming here, we would have been able to reverse what seemed to be a decline of 3% last year.  “Decline in the sense that the growth year for last year was 3% compared to say 2014, where I think it was in excess of 4% and previous years where it averaged around that,” he said.

The minister said too that despite all the issues government would have faced after taking office last May, “we were able to do a range of things,” but he added that the newspapers have failed to be balanced on the issue as comments were sought “from the usual suspects.”

“Here you can see in newspaper where just a one-sided view is given and [after] a whole year of achievements you have a couple of people, all they do is gripe whole day,” he said, in an apparent reference to Stabroek News.

Meanwhile, Dr Ganga, in brief remarks, said that inflation has been constrained and there is an estimated .5% deflation for the first quarter of this year. He said that Guyana is seeing a net purchase of foreign exchange to the tune of just over US$25 million, which has resulted in a “relatively unchanged exchange rate.”

He said that on the current account, the bank is seeing a significant movement in terms of moving from a deficit of US$73.4 million to a surplus of about US$51.5 million. With regard to the capital account, he said the bank would have seen movement from a deficit of US$51.7 million to US$14.8 million.

Reserves, he added, have increased from $598 million at the end of 2015 to about $619 million at the end of March 2016.

“…We are seeing some improvement in terms of the overall balance. We have seen a marginal decline in external debt and a marginal increase in domestic debt,” he said, while adding that there was a “flat movement” for the financial sector.

“All in all, the financial system is quite healthy, [and] sufficiently capitalised,” he said. “Basically, we have seen an economy with very sound macroeconomic indicators (and) good confidence in the system to move forward,” he added.

 

Consumers not getting reductions

Jordan, speaking on government’s successes over the last year, noted that salaries were increased by more than 5%, pensions were increased by a “substantial amount,” there was a VAT reduction on various items, incentives to the gold sector, electricity tariff reductions, gasoline price reductions and increases in the income tax threshold. He pointed out that none of this was given in the one year review done by the newspaper.

He said that one now has to investigate if the consumers are actually benefiting from the incentives given. “Are you, the consumer, getting the benefit…? With the reduced gasoline prices, are you getting the benefit of a reduced bus fare? With reduced electricity prices, which is good for the manufacturing sector, have you seen any reduction in the prices of any one of these locally produced goods?” he asked, while adding that the government doesn’t see a reflection of the partnerships it pushed.

“We can’t go and hold the hand of a manufacturer and say listen, we have just reduced electricity by x percent why don’t you… that pressure also has to come from other members of society, that, ‘look, the government has just reduced electricity prices, why you are not reducing your prices of your commodities? Instead of having the pressure groups coming back to government for even more reductions,” he said

Jordan said government will look again as to how it will manage incentives so that the consumer gets the benefit of the reduction. “As it stands, at the moment the consumer is not getting these reductions that we have been able to do at great cost,” he said.

Jordan also said that government has been working to enhance the country’s business climate. “We haven’t been sitting down on our laurels. Since we came into power, I have been beating the doors down at the IDB, CDB and other multilateral institutions to get our programme with them going,” he noted.

 

Loans for key areas

According to him, the government has been able to complete some strategic approaches to the formulation of loans for the 2016/17 period. He informed that government is looking to get a number of loans in key areas.

He mentioned the Agri Development Loan, which will deal with agri diversification and livestock development in the intermediate savannahs. Jordan said that government is also looking for a Business Development Loan to improve the way business is done in Guyana. He said that government wants to improve the country’s rating on the World Bank’s Doing Business Index. He explained that this loan will look at the various aspects of improving the business climate here.

“When I met with the private sector during the last budget, they said that one of the hindrances to exports was that we didn’t have a properly certified lab to export to various places. Well, we are discussing as part of the Business Development Loan—the development of a state-of-the-art lab in which all of these activities could take place,” he noted.

In terms of partnership with the Caribbean Development Bank (CDB), he said that government is looking at the Single Window Automated Processing System (SWAPS) project which had started under the previous government and had either been abandoned or was incomplete. “We are looking to get assistance,” he said, while noting that government is also pursuing a loan for the justice sector for its improvement, particularly to address the backlog of cases, updating legislation and modernisation of the judiciary.

As regards the health sector, he said government hopes to get a loan which will target the reduction in maternal, child and infant mortality, a modern and centralised place for baby care and improving institutional capacity.

Government is also seeking financial assistance for suicide prevention, he said.

Jordan informed that with regard to the World Bank, an interim country engagement note has been completed and this would allow government to access resources for the University of Guyana, which will included the construction of new labs, lecture halls, library, improvement to the management information system and rehabilitation of the sewage system.

He also spoke of a programme for the improvement of the education sector that will look at the education curriculum from the primary to university level and a national payment system to remove Guyana’s use of paper money as a means of transacting business.

Jordan said too that a project to revamp and improve long-term planning in the country should get underway in the second half of the year.

He spoke of government’s vision of improving the water and sanitation sector, inclusive of water treatment plants and sanitary landfills. Clean energy, particularly solar energy, will also be addressed, with Bartica being the first clean energy driven town, he added.

Jordan told reporters that under the International Fund for Agriculture Development, government is looking at a rural and hinterland development project geared towards agro processing and the development of small scale agriculture business, particularly in the hinterland regions of the country.

As regards the coastland, he said government is seeking a loan to pilot small scale agri-development in several areas inclusive of Ithaca, Buxton, Triumph and Mocha.

.

If wishes had wings.

FM

The coalition will stand or fall on this issue ....I understand stabilising the economy and looking at the issue on a macro level...After the narco spending and black economy are not accounted for and holding back.. it makes sense ...But what is the short,medium and long term plan

I think we are all still waiting ..and that's a major concern 

 

 

 

FM
Dougla_80 posted:

...But what is the short,medium and long term plan

I think we are all still waiting ..and that's a major concern 

 

 

 

And this is the core issue.   It is one thing to reduce public deficits.  But if there is no economic transformation, then the coalition would have failed.

FM
caribny posted:
Dougla_80 posted:

...But what is the short,medium and long term plan

I think we are all still waiting ..and that's a major concern 

 

 

 

And this is the core issue.   It is one thing to reduce public deficits.  But if there is no economic transformation, then the coalition would have failed.

I agree with you CaribNY, where are the plans.

FM
Brian Teekah posted:
caribny posted:
Dougla_80 posted:

...But what is the short,medium and long term plan

I think we are all still waiting ..and that's a major concern 

 

 

 

And this is the core issue.   It is one thing to reduce public deficits.  But if there is no economic transformation, then the coalition would have failed.

I agree with you CaribNY, where are the plans.

In fact this should be the discussion. Not some falsity that all was well prior to May 2015, and now its all wrong.

APNU AFC inherited a problem. They were elected to correct it. But we haven't seen any clue that they even know what to do.  And in fact I was worried when I saw that they eliminated the Ministry of Trade, and when this Ministry of Business appeared, and when there was a Ministry of Tourism, and none with a focus on manufacturing.

FM

God was a boy the last time the Guyanese economy could be classed in good shape.

The method of just shipping out commodities is dying quickly as the Arab and African country's are now waking upto and despite the visual veneer of the last 20 years or so of progress narco shopping malls and big homes does not an ecomomy make

Agri-Processing, Small Manufacturing, and Off shoring to kick start the IT sector not to mention building a joined up working infrastructure. We often say look at Asia..But actually we could or should look no further than Uruguay in terms of population, diversity of economy and how to scale.

12 months in no plan or sign of one at the moment, that it's an issue and needs to be addressed asap....Lets see

FM

Add Reply

×
×
×
×
×
Link copied to your clipboard.
×
×