A difficult year


Stabroek News
December 30, 1999


Despite the lengthy public service strike which led to a virtual shutdown in parts of the urban economy the national economy is expected to grow by a little over two per cent, slightly better than predicted at the beginning of the year. However, most of this is due to the sugar industry which ended the year with production of 321,438 tonnes, over 20% better than l998. There was also some growth in the manufacturing sector in the areas of margarine, flour and plywood.

Production in rice was expected to be up by about l2 per cent, better than predicted in the budget. However, prices were poor and rice farmers are facing widespread problems. Indeed it has been reported that almost one third of the loans made by the commercial banks are non-performing within the criteria laid down by the Financial Institutions Act and the rice industry may account for at least half of this. But other businesses have been affected, many are strapped for cash and in a few cases receivers have been appointed.

Forestry production was estimated as 9.3% up at the end of the third quarter. The industry has faced problems with new `green' requirements. Also, it continues to be a matter for regret that so much still goes out as lumber and value added industries like plywood and furniture are still relatively undeveloped.

Fishing output was down at the end of the third quarter, though shrimp held its own. There continues to be a strong feeling that much of our fish is being stolen by fishing boats from other countries and that this will continue until we equip our coastguard adequately.

Egg production was up substantially though poultry production declined for the third quarter compared to the previous year. Gold production fell, Omai's production being down by 8.8% for the third quarter compared to the previous year. Bauxite production fell by nearly l0% for the third quarter compared to l998 and export demand was weak. Privatisation procedures are in train for the State owned industry and the period for bids has been extended.

In the manufacturing sector the production of garments, footwear, refrigerators and stoves showed a decline though there were increases in soap, stockfeed and paint. In the construction sector, new mortgages were down by over 25%.

The picture as a whole is not bright, indeed it was for many businessmen and other citizens a difficult year. Inflation up to the end of the third quarter based on the Georgetown Consumer Price Index was 8.5%. It is clear that new investment continues to be an absolute priority. The sugar industry has plans for major expansion and for an improvement in efficiency. And the privatisation of the Guyana Electricity Corporation during the year has laid the basis, it is widely hoped, for the provision of a reliable and expanded supply of power that can lay the basis for industrial expansion. The privatisation of the bauxite industry would throw out a lifeline to this industry which has been in crisis for many years and the Beal Aerospace deal could be a boost in many ways. All is not lost, but the pace is still much too slow. As suggested in Tuesday's editorial, we have to go looking for investment rather than waiting for it to come.


A © page from:
Guyana: Land of Six Peoples