Guyana's exports edged up last year by 3.5% helped by bauxite and sugar while imports increased by $1.5% mostly on the back of higher fuel purchases.
Total exports reached US$512.8M while imports stood at $571.7M leaving a trade deficit of $58.9M.
According to the Ministry of Foreign Trade's annual review, export earnings were boosted by a significant increase in sugar ($129.5M) and bauxite ($40.4M). Gold remains the top export earner at $130.9M but this was down from $136.2M in 2002; fish and shrimp brought in $53.9M up marginally from $52.6M while rice exports were $45.3M, down marginally from $45.5M. Timber was also sharply down from $35.5M to $30.7M.
Sugar earnings increased despite a production shortfall. Exports to Caricom markets increased by 10.7%. Sugar exports to the EU under the Sugar Protocol paid US$509.2 per tonne while the average world market price was US$278.3.
Rice earnings declined because of larger shipments of cargo rice which has a lower value than polished rice. The overall unit price was US$225.9 per tonne as compared to $234.9 in 2002. The EU remained the largest market taking 54.06% of exports with Portugal and Holland the main importers. Caricom countries imported 26% of rice exports with the vast majority going to Jamaica and Trinidad.
The bauxite industry had a better year with exports earnings increasing by 14.8%. This was due to an increase in export volume of 9.6% and a 15.7% increase in the average price. In the timber sector exports of "other timber exports" were down 19% to US$19.7M.
Guyana's non-traditional exports also saw a decline to $3.7M. Major exports were heart of palm, coconut oil, plantain, copra meal and copra. Exports to Caricom rose to 52% from 45% of total share with Barbados and Trinidad proving valuable markets. But the overall decline came from reduced exports of heart of palm to Europe.
Imports
There was an overall decline of 5.1% in imports of consumption goods in 2003 compared to 2002. However, increases in the import of intermediate goods and capital goods were recorded at 5% and 2%.
"Of the three categories, intermediate goods remains at the top with 54% or $305.5M of total imports, up marginally from 2002. The value of consumption goods stood at $149.3m while capital goods increased to $119.1M.
The bulk of the imports remains fuel and lubricants amounting to a massive 22% of total imports, followed by food for final consumption.
Direction of Trade
Exports to the European Union, says the report, accounted for 34.9% of total exports up from 28.4% in 2002. The UK emerged as Guyana's No 1 market in the EU followed by France, Belgium and the Netherlands. Major products were rice, sugar and heart of palm. In the other direction, the UK was the fourth largest source of imports.
Canada retained its position as Guyana's second largest export market, despite a drop to 21.8% of total exports. Gold, sugar, rice and seafood were the primary exports.
The United States is now Guyana's third largest export market, off from the No. 1 spot in 2002. Exports declined to 18.1%. The US remained the No. 1 importer.
Exports to Caricom increased to 18.9% of total exports while imports increased sharply to 29.9% of total imports as opposed to 18.6% in 2002. Trinidad was the main beneficiary with a 71% increase in exports to Guyana.
Foreign direct investment
The trend since 2000 has been for domestic investment to expand much faster than foreign direct investment. Total investment stood at G$50.4B in 2003 down form $52.6B in 2002.
The report cites prospects of a 2.5% growth in real GDP for 2004 on the bak of improved performance. In the key sectors. Exports are expected to grow by 6.9% while imports are expected to increase by 12.9% premised partly on the large number of ublic sector projects.