Mid-year report shows economy improves

The mid- year economic report is out and the numbers are favourable. During a Press Conference today, Minister of Finance, Winston Jordan disclosed that Guyana’s economy has registered an improvement of 2% during the first six months of the year. This was attributed to the improved prices for gold.

Earlier in the year, gold projection stood at 550,000 ounces but it is now expected to be 650,000 ounces.

However, the economy is projected to decline in the second half of 2016, largely due to poor performances of rice and sugar.

He attributed the “very good performance” to a 65.7 percent improvement in the mining and quarrying sector where gold increased by 94.3 percent and bauxite 2.9 percent .In the area of agriculture, other crops contributed 2 percent, livestock by .8 percent and fisheries 2.1 percent.

The Finance Minister said the Mid-Year Report would show a 10 percent decline in agriculture due to a 30 percent and 26.2 percent shortfall fall in rice and sugar production and 13.1 percent drop in forestry.

The poor performances in rice and sugar, he said, account for the overall 14.1 percent drop in the manufacturing sector.

He said latest projections are that Gross Domestic Product would increase by 4% percent instead of the original forecast of 4.4 percent predicted earlier in the year.

The report states that revenue collection has increased by 9.7 percent.