Guyana: Economy

In 2009, the real gross domestic product (GDP) grew 2.3%, compared to 3.1% in 2008.

Agriculture and Livestock
In 2009 the sugar industry experienced modest performance, with a 3.3% production increase that was the result of inclement weather and lower sugar cane yields during the first crop production and a large number of industrial disruptions during the second crop production. The rice industry output increased 9.2%, recording the highest annual production level in a decade and the second-highest production level in the history of the industry. This strong performance was attributed to increased acreage under cultivation, higher yields, favorable weather conditions, and fertilizer assistance from the government. Other crop sectors experienced 5.8% growth in 2009, as a result of the government’s “Grow More Food Campaign” and increased market access. The livestock sector recorded 2.5% growth, which was attributed to improved livestock breeds and more breeding stock.

Fishing
The fishing sector fell by 10.5%, as a result of a reduction in demand in export markets and depletion of fishing stock in certain fishing grounds.

Forestry
The forestry sector recorded a 0.6% decline due to lower demand for forest products in export markets.

Mining and Quarrying
The mining and quarrying sector recorded mixed performance in 2009, and the sector grew by 0.7%. Gold production increased by 14.7%, spurred by a continued increase in world market prices. The bauxite industry declined by 29%, reflecting a mix of internal and external developments. Diamond declaration declined 14.8%, as a result of productive capacity being diverted to the lucrative gold industry.

Manufacturing
The manufacturing sector (excluding sugar processing and rice milling) continued to show mixed performance, with some sub-sectors such as aerated beverages, mineral and distilled water, and stockfeed recording increased production, while the other sub-sectors such as rum and malt-based beverages declined. As a result the manufacturing sector remained balanced in 2009.

Construction and Engineering
The engineering and construction sector recorded a moderate performance resulting in 1.5% growth in 2009, due to an increase in residential construction, lower value-added type construction, and maturing of large construction projects.

Services
The service sector continued to grow strongly in 2009. The transport and communications sub-sectors grew by 2%. The distribution sector grew by 6.6%. Financial services grew 3%, while rental of dwellings grew by 2%. Other services grew by 3%.

Inflation
The inflation rate was recorded at 3.6% at the end of 2009 as compared to 6.4% at the end of 2008.

Exchange Rate
In 2009, there was a marginal decrease in the value of transactions conducted on the foreign exchange market. The overall volume fell by 2.8% to reach U.S. $4.7 billion, consistent with the reduction in value of external current account transactions. The market adjusted in 2009 and the value of the Guyana dollar appreciated by 0.97% against the U.S. dollar.

Merchandise Trade
The merchandise trade deficit decreased to U.S. $401.1 million in 2009 from U.S. $522.1 in 2008. This reflected a reduction in the value of imports.

Export receipts in 2009 amounted to U.S. $768.2 million as compared to U.S. $801.5 million in 2008. This reduction was a result of external price factors. Gold export earnings increased by 38.3% to U.S. $281.7 million as a result of higher production, 24.4% increase in export volumes, and 11.2% increase in average export prices. Bauxite export earnings decreased by 39.3% to U.S. $79.5 million, as a result of external market conditions. Sugar export earnings declined by 10.2% to U.S. $119.8 million, because although the volume of sugar exported increased by 3.4%, the average export price of sugar declined by 13.1%. Rice export earnings decreased by 3.3% to $114 million, because although the export volumes increased by 32.9%, the average export price declined by 27.3%. Guyana's primary export markets in 2009 were: Canada (26.5%), the U.K. (13.7%), U.S. (12.3%), Ukraine (6.3%), Jamaica (4.9%), Netherlands (4.6%), Germany (4.2%), Trinidad and Tobago (3.7%), Barbados (2.1%), and Belgium (1.8%).

The value of merchandise imports in 2009 decreased by 11.7%, to $1.2 billion. The decrease reflected activities associated with a 32.5% decrease in the value of imported fuel and lubricants. Other imports decreased by 1.8%, with non-fuel immediate goods declining by 10.3%, while consumption goods increased by 2.9% and capital goods increased by 1.7%. Guyana's primary imports in 2009 were from the U.S. (28.7%), Trinidad and Tobago (19.6%), Venezuela (6.9%), Suriname (5.3%), China (5.1%), the U.K. (3.7%), Japan (3.6%), Finland (2.4%), Canada (2.3), and Netherlands (1.8%).

Debt Management
The stock of domestic debt and external public debt amounted to U.S. $422.3 million and U.S. $933.0 million, respectively. Domestic and external public debt increased by 16% and 12%, respectively, at the end of 2009. The former is attributable to an increase in the issuance of treasury bills to sterilize excess liquidity, while the latter is due to increased disbursements from multilateral and bilateral creditors. Domestic debt services decreased by 28.75% to U.S. $20.9 million and external debt services decreased by 14% to U.S. $17.5 million as a result of lower principal payments.

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