Gold sector spurs modest economic growth

Nov 04, 2017 News

…$187 billion in investment projects facilitated
President David Granger has credited Guyana’s moderate economic growth to gold production.

President, David Granger

Addressing the opening of 71st sitting of the National Assembly on Thursday, President Granger said that Guyana’s economy has been managed prudently over the past 30 months.
He said this has allowed for moderate economic growth of 3.1 per cent in 2015 and 3.3 per cent in 2016, despite the unfavourable external environment. According to President Granger, gold was the main contributor to this growth, with 712,707 ounces being produced last year, the highest in the country’s history.
“Economic growth would not have been possible without the achievement of macroeconomic stability,” President Granger outlined.
He said the Ministry of Finance has acted to create a favourable environment for business development, to protect investments, to moderate inflation and to maintain a stable exchange rate.
President Granger boasted that Government has adopted measures to improve the living standards of workers. He said that the minimum wage of public servants has increased within the past 26 months by over 50 per cent, from $39,540 to $60,000.
Government, he said, has reduced the income-tax rate and increased the income tax threshold by a minimum of 20 per cent as part of measures which boosted working people’s disposable income.
National competitiveness has been enhanced by the reduction of the corporation tax rate for manufacturing and non-commercial companies from 30 per cent to 27.5 per cent. The Value-Added Tax (VAT) was reduced to 14 per cent and the VAT threshold increased from $10 million to $15 million.
He said Government will continue to support the traditional sectors of the economy, particularly the sugar industry.
According to the President, Government has provided $31B in financial support to the Guyana Sugar Corporation (GUYSUCO) in order to protect the livelihood of workers and to arrest the corporation’s financial haemorrhaging.
“The sugar industry is being consolidated; it is not being closed. We will explore all options in the new financial year, 2018, to ensure a viable industry, mindful of its impact on the Nation’s rural economy and its residents,” President Granger outlined.
He said measures have been taken to improve the business environment and these include reducing the processing time for investment agreements; implementing a trusted-trader programme, establishing business registration hubs in the Potaro-Siparuni and the Rupununi (Upper Takutu-Upper Essequibo) Regions.
He said Government has been promoting increased investment, improving the business environment, increasing value-added production and exports and developing the tourism sector.
President Granger outlined that the Guyana Office for Investment has facilitated, since May 2015, some 240 investment projects valued at $187 billion. The tourism sector continues to show promise with a 14 percent increase in tourist arrivals between 2014 and 2016.
Since taking the reins of Government, the Granger administration has been focused on rebalancing the economy, horizontally, through support of the micro, small, and medium-scale enterprise sector.
According to President Granger, loans and grants have been issued under the Hinterland Employment Youth Scheme (HEYS), the Linden Enterprise Network (LEN), the Micro- and Small-Enterprise Development (MSED), the Sustainable Livelihoods and Entrepreneurial Development (SLED), the Women of Worth (WOW) initiative and the People of Worth Entrepreneurial Resources (POWER) initiative.