1,500 new BPO jobs before year end Empowering women entrepreneurs The StabilityStabilityRenegotiation,SharingProductionAgreement,andtheClause(Part1)TheProductionSharingAgreement,Renegotiation,andtheClause(Part1)PAGESEE3A PAGESEE2ASEEPAGE6A
These new hires will as sist itel in fulfilling the needs of some of North America’s most renowned brands in Retail, Tech Support and Healthcare, a release said. itel is known for its out standing customer-experi ence delivery and it plans to hire Guyanese who are customer-service oriented and who have a desire to learn.The release said itel’s retention culture fosters ca reer growth and develop ment through training and mentorship, while offering employees the opportunity to explore various career paths within the organisation. Persons hired will receive competitive salaries, training, health insurance benefits, and will also have access to incentivised employee pro grammes.“Guyana is poised at a very crucial junction be tween untapped talent and explosive growth in the com ing years, especially in the BPO sector; itel is optimistic about bringing top interna tional brands to the country, and with an major‘go-toGuyanapoolwell-educatedgovernment,investor-friendlycoupledwithayoungtalenttosupporttheinflow,issettobecomethedestination’forallplayersinthissector,”saidCountryManagerKailashRao.
1,500 new jobs before year end
RaybourneRecruitmentGuyatwillTELEPERFORMANCErecruit1,000personsitsvariouslocationsinanabyyearend,saysManager,Bowman.
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Prime Brigadier(ret’d),Minister,MarkPhillips,whowaspresentattherecentrecruitmentdriveinRegionSix,urgedthosegatheredtomakeuseoftheopportunityandpointedoutthattheGovernmentwascommittedtoensuringthateveryonehasaccesstoemployment.Henotedthat,sincetheGovernment’saccessiontooffice,ithasliberalisedthetelecommunicationssector,whichhas,inturnopeneddoorsforcompetition,thusmakingmoreopportunitiesavailabletocitizens.“ThisisawonderfulopportunitytoshowcasethePublic-PrivatePartnershipinactionand,heretoday,atthisjobfair,[thereare]lotsofopportunitiestocreatejobsinRegionSix.Throughtheliberalisationofthetelecom munications sector, we have an expansion of the infra structure and now we have the technology where, basi cally, you can work from any where. So Teleperformance is here with us and, at the end of this process, I know many of you will be employed; some may be employed to work from an established build ing and some of you will be given the equipment and the training so that you could start working almost im mediately from your home. Here, in Guyana we have the technology now and, through Public-Private Part nership, we are going to every region, embracing the technology and providing employment for the people.”
Another business process outsourcing provider (BPO), intel, an award-winning com pany founded in the Caribbe an, has also announced plans to recruit more than 500 employees in the next few weeks to support its expand ing operations in Guyana.
Meanwhile, since as suming power two years ago, the Government has operationalised a call centre in Linden and two such fa cilities are slated for Berbice -- one at Palmyra and the other in the Upper-Coren tyne. Work on the facility at Palmyra has commenced and is expected to be com pleted within three months. The centre is scheduled to be operational by early 2023. It is anticipated that, when the two call centres are ‘up and running’, they will provide a minimum of 300 jobs.
Empowering women entrepreneurs
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THE Women’s Chamber of Commerce and Industry Guyana (WC CIG), on Wednesday, launched the WE3A Strengthening Women Entrepreneurs in Value Chains project at the Cara Lodge, George town. Guyana is one of the six beneficiaries of the programme, a multicountry initiative cur rently offered in six Cen tral and South American Countries. The threeyear programme is a joint partnership with the Thunderbird School of Global Management at Arizona State University, the Women Entrepre neurs Finance Initiative (WeFi) and IDB Lab. It aims to ances/partnershipsingchaintriesSouth(WSMEs)andwomen-led/ownedstrengthenSmallMediumEnterprisesinCentralandAmericanCounbyenablingvalueintegration(creatstrongbusinessallithat offer WSMEs end-toend/holistic services). WE3A is founded on three core thesaw2021.theforwerebusinessconsisthortportunities.toticipantschain.thatConnectopportunitiesandID-19andvalueTheseDreamBuilderresourcestrainingaccessparticipantsUndertivatecomponents:programmeAspire,AcandAccelerate.thesecomponents,willgaintohigh-qualitymaterialsandthroughtheplatform.includetrainingonchainintegrationadaptationtoCOVMarketconditionspotentialpartnershipwithWEInternationalcanaddtotheirvalueAdditionallyparwillbeexposednetwork-buildingopThefirstcoofparticipantswillof60early-stageownerswhoselectedfromacallapplicationsissuedbyWCCIGinNovemberWednesday’slaunchtheattendancebyBritishHighCom missioner, Jane Miller, as well as representa tives from the Ministry of Tourism and Com merce, the Thunderbird School of Global Man agement, the IDB and other key stakeholders. During her remarks to the audience, the President of the WCCIG, Rowena Elliot, lauded the initia tive and impressed on its importance, particularly regarding its ability to foster growth, advance ment and empowerment for Guyanese women, which is one of the man dates of the WCCIG. “This project means a lot to the Chamber because it is something that we believe will propel wom en; it will support women and push women forward as it relates to entrepre neurship and women in business,” Elliot said. Over the next six months, the first co hort of participants will undertake digital, selfpaced capacity build ing courses related to value chain 2022.becallWCCIG.forbytheaccessnessesWomen-ownedintegration.busiinGuyanacanthebenefitsofWE3AprogrammeansweringacallapplicationsbytheThesecondforapplicationswillissuedinOctober
The launch saw attendance by British High Commissioner, Jane Miller, as well as representatives from the Ministry of Tourism and Commerce, the Thunderbird School of Global Management, the IDB and other key stakeholders Members of the WCCIG and some of its Board Members at the launch of the WE3A Strengthening Women Entrepreneurs in Value Chains project
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THESUMMARYprojectfull life cycle of the oil and gas business is around 30 years or more. During the exploration and de velopment stage which spans about 20 years before production, the oil companies continu ously inject capital to explore and develop the resource. Then 20 years later, as in the case of Guyana, starts to produce to gener ate the revenue which in turn has to recover the capital investment, operating cost and pro vide a decent profit for the company and the Government. After the exploration and if no discovery was made and / or not in com mercial quantity, then the capital invested in the exploration stage would be a loss for the oil companies. The nature of the oil and gas business is one that is of high invest ment risks and capital intensive. To put this into perspective, the exploration and devel opment cost for Liza 1 alone amounted to about US$4 billion, the total estimated development cost for Liza 1, Liza 2, Payara and Yellowtail is about US$29.3 billion, representing 100% of Guyana’s pre-oil GDP in the case of Liza 1 and for the four approved projects combined repre sents 7.3 times Guyana’s pre-oil GDP. This simply means that the financial resources of the entire country (the sum total of private sector, house holds, and government) are not enough to de velop even one phase of the development. With this in mind, it is im portant to appreciate the high-risk nature of the business in general and the natural outcome for that is it carries a higher risk premium – meaning, the investors require a decent return on their investedTakencapital.together, given that major countries are already accelerating cli mate change policies, designed to transition from a fossil-fuel driven energy system to renew able energy, one can ob serve that all of these, combined, amounts to hundreds of billions in U.S. dollars to fuel these massive investments which ultimately means, that these developments are going to have a di rect impact on global oil prices which will be on a downward trajectory, at some point into the future. The ultimate ef fect would be that global demand for crude oil will fall steadily until it will reach to a point where it may no longer be feasible.
Agreement,
DISCUSSIONANALYSISAND
The Production
6A BUSINESS SUPPLEMENT September 4, 2022
Joel Bhagwandin
Project Lifecycle, Capital Investment and RisksFirst, let’s understand the project lifecycle of the oil and gas business, the high capital-inten sive nature and some of the key risks involved. The project lifecycle en compasses three stages: the exploration stage which can last for about 5-10 years or even15 years, the development stage once the resource is found in commercial quantities which is an other 5 years and then the productive life an other 10 years per pro ject. The full lifecycle is therefore around 30 years or more. More im portantly to note, during the exploration and de velopment stages which span about 20 years before production, the oil companies continu ously inject capital to explore and develop the resource. Then, 20 years later, as in the case of Guyana, starts to pro duce to generate the rev enue which, in turn has to recover the capital in vestment, operating cost and provide a decent profit for the company and the Government. It should be noted as well that after the explo ration and if no discov ery was made and / or not in commercial quan tities, then the capital in vested in the exploration stage would be a loss for the oil Thecompanies.natureofthe oil and gas business is one that is of high invest ment risks and capital intensive. To put this into perspective, the exploration and devel opment cost for Liza 1 alone amounted to about US$4 billion, the total estimated development cost for Liza 1, Liza 2, Payara and Yellowtail is about US$29.3 billion, representing 100% of Guyana’s pre-oil GDP in the case of Liza 1 and for the four approved projects combined repre sents 7.3 times Guyana’s pre-oilThisGDP.simply means that the financial re sources of the entire country (the sum total of private sector, house holds, and government) are not enough to de velop even one phase of the development. With this in mind, it is im portant to appreciate the high-risk nature of the business in general and the natural outcome for that is it carries a higher risk premium – meaning, the investors require a decent return on their invested capital. Let’s consider the risk of an oil spill. Interest ingly, the same group of advocates calling for renegotiation of the con tract are also chanting for the oil companies to give some form of guarantee other than the insurance – that it has full responsibility for the liability in the worstcase event of an oil spill, which is important and not to be discounted. Just over a decade ago the Valdez oil spill costs exceeded some US$7 billion; in today’s mon ey that’s roughly US$9 billion. In a worst-case scenario for Guyana as suming an oil spill to this magnitude where the costs might exceed US$10 billion, the oil companies’ take across the four approved pro jects is 24% or US$41.7 billion according to an updated forecast con ducted by SPHEREX Analytics. Assuming a US$10 billion oil spill lability, this will erode the cumulative profits of the oil companies by 24% across the four ap provedNotwithstandingprojects. the worst-case scenario of an oil spill above, it is worthwhile to note that the oil and gas indus try is a highly regulated global industry where health and safety is a number one priority. And the industry is so big that with any eventualities such as an oil spill which is catastrophic, the tech nology employed in Sharing Renegotiation, the Stability
and
Clause (Part 1)
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BACKGROUND There is a group of persons both locally and abroad advocating for the renegotiation of the Production Sharing Agreement (PSA) be tween the Government of Guyana and the oil com panies (Esso Exploration and Production Guyana Limited (EEPGL), Hess and CNOOC). More re cently, proponents of this view have argued that with rising oil prices –the Government should press for renegotiation. The Government’s position is that it will not renegotiate the current PSA for the Stabroek Block; however, future PSAs will have differ ent fiscal terms. The oil companies on the other hand have stressed the importance of the stabil ity clause. Further to note, the Government has committed to ensure better contract adminis tration as an alternative means to extract more value for the country from the existing PSA framework without re negotiation. To this end, it is important to dis tinguish between what constitutes “Government Take” and what con stitutes “the Country’s Take”. In this context, it is also important to analyze whether, through contract administration, the country is getting more value versus defy ing the odds and proceed straight to renegotiation – bearing in mind the many ramifications of renegotiating the con tract especially if this is not a desirable outcome on the part of the oil companies.Thisarticle is the first of a series of articles that will seek to address this issue and to examine in an in-depth manner the ramifications and the different options of deriving more value for the country.
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The Production Sharing Agreement...
BUSINESS SUPPLEMENT September 4, 2022 11A the sector develops and evolves at a fast rate. So, the technology, equip ment, and resources to day to mitigate the risks of an oil spill or at best to minimise the impact of a catastrophic oil spill, never existed over a decade ago. Guyana is therefore fortunate to be the beneficiary of these new and advanced tech nologies and therefore the risks of an oil spill, while it is real, is low to moderate, and should be quickly fromwhichpremiumthesetonologystate-of-the-artanceHowever,contained.theinsuraswellasthesetechandequipmentmanageandcontainrisks,comesatacostaswellhastobedeductedcostoil.
THE THEDYNAMICSCHANGINGOFGLOBALOIL&GASINDUSTRY
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The global oil market has been at the centre of economic news over much of the past years. When one examines the degree of vast develop ments and richness with which oil rich countries in the Middle East such as Dubai, among others, have attained, this has certainly validated the notion of the magnitude of economic prosperity, wealth, and development this resource can bring to a country and its people. The global oil mar ket has undergone sig nificant changes over the last 10 or 15 years. Underscoring this evo lution – two changes in particular have had profound impact on the economics of the oil market, the most sig nificant stemming from the United States (U.S) Shale oil revolution: the rapid growth of onshore oil production in the US, typically using hydraulic fracturing techniques to extract oil from shale and other types of so-called tight rocks. The second major change has to do with increasing global concerns about carbon emissions and climate change. The momentum for increased actions is growing – with specific reference to the Paris accord or the recently concluded meeting with major global leaders which saw the US with drawing their support for the Paris deal. Ironically, as the US withdrew their support, without much delay, many other coun tries, including China, strengthen their support in this regard. If this sense of urgency trans lates into policies, this could have significant implications for the long run demand for fossilfuels.It is worthwhile to mention that while pe rusing and synthesis ing the current body of literature that sought to address the future out look and projections of oil prices, it was found that those analyses that were conducted by oil companies themselves, projected that global oil price will increase at a rate of 1.25 percent annually in line with a shift in demand from west to east – India and China and will largely be driven by the global transportation sector. Conversely, the inherent flaw with these analyses is that they ignored the impacts climate change policies will have on oil consumption and also technology is another key factor that will be a major threat to sustain able oil prices in the future. Already there are developments in the creation of electric cars for example, and these developments will be accelerated and have real implications in respect to the oil Theprices.firstbasic prin ciple of oil is that it is an exhaustible resource. Total stock of recov erable oil resources is assumed to be known and the main focus is on the optimal pace at which these resources should be exhausted. But empirical evidence has shown that, in practice, estimates of recoverable oil are increasing all the time, as new discoveries are made and technol ogy and understanding improve. Moreover, they are increasing at a more rapid pace than existing reserves are consumed. Over the past 35 years, in very rough terms the world has consumed over 1 trillion barrels of oil. Over that same period, proved reserves of oil have increased by more than 1 trillion barrels. Put differently, for every barrel of oil consumed, another two have been added. With reasonable certainty, to tal proved barrels of oil which can be economi cally recovered from known reservoirs are al most two and half times greater today than in 1980.But what is of critical importance at this point in time is the growing recognition that concerns about carbon emissions and climate change mean it is increasingly un likely that the world’s re serves of oil will ever be exhausted. These trends and developments will inevitably have a bear ing on the world market price for oil and which is likely not going to be an upward
OilmeanglobalingWhattrajectory.doesthechangdynamicsoftheenergymarketforthefutureofPrices
With a rapidly chang ing global environment, especially the growing recognition given to the need for the advance ment of climate change policies globally – un derpin the notion that crude oil will lose its value – a trend that will certainly continue to gain momentum in the foreseeable future. In recent decades, crude was often referred to as ‘black gold’ because it was a commodity known to carry high value on global markets. The highest price was re corded in the last decade in 2008 – at US$140 per barrel until recently again.The international crude oil market is the source for the primary feedstock for creating refined petroleum prod ucts produced in oil re fineries across the world. Global production and consumption have been increasing and more than 80 million barrels of crude oil is produced each day according to IEA statistics for 2013. Notwithstanding, with the emergence of shale oil, coupled with grow ing concerns about cli mate change and the environment, means that the traditional beliefs that were upheld in the past to analyse the oil market are outdated. A new toolkit is needed together with a new set of principles to guide the analyses of the oil market. Oil is not likely to be exhausted: There fore, there should not be a presumption that the relative price for oil will necessarily increase over time.A key factor gov erning the future price of oil is whether the standardised, tosureincreasingandpendentButdampenes,responsiveoil:differentteristicsproductionspreadgainswithingprocesses“manufacturing-like”repeated,characterisshaleproduction,theassociatedrapidinproductivity,toothertypesof(Dale,2015).Thesupplycharacofshaleoilaretoconventionalshaleoilismoretooilpricwhichshouldacttopricevolatility.itisalsomoredeonthebankingfinancialsystem,theexpooftheoilmarketfinancialshocks.The
Among the top three nations, China is the undisputed renewable growth leader, account ing for over 40 % of total global clean energy by 2022. This is due to meeting various capac ity targets and address ing concerns about the country’s air pollution. In recent months, China has deployed a number of novel technologies designed to clean the air, including ment,latefiscaloperatingaftercyclewasDepartmentMarchCosts’Natural‘Trendsaoilwithrum).(Worldoverphotovoltaiconshoreperaspricethis(IRENA)newableThecheapertimewasfallandergycostForum).hiclesandbioenergyleaderChinaitsexpectscordingtargetpassedcountrythesmog-sucking100-metre-talltowerincityofXian.Thehasalsosuritssolarpanelfor2020,andactotheIEAitChinatoexceedwindtargetin2019.isalsothemarketinhydropower,forelectricityheat,andelectricve(WorldEconomicMoreover,theofrenewableensourceslikewindsolarcontinuestodrastically,anditonlyamatterofbeforetheywerethanfossilfuels.InternationalReEnergyAgencybelievesthatwillhappenby2020,couldbeaslowthreecents(USD)kilowatt-hourforwindandsolarprojectsthenexttwoyearsEconomicFoMoreinterestingly,respecttoupstreamcosts,accordingtostudydoneonthe,inU.SOilandGasUpstream-publishedin2016-bytheU.SofEnergy;itfoundthat,“thefullprojecteconomics,takingintoaccountcostandthesystemunderthe2014costenvironmostofthedeep-
CONCLUSION Taken together, given that major countries are already accelerating cli mate change policies, designed to transition from a fossil-fuel driven energy system to renew able energy, one can ob serve that all of these, combined, amounts to hundreds of billions in U.S. dollars to fuel these
12A BUSINESS SUPPLEMENT September 4, 2022
water current and future projects are forecast to be uneconomic at oil prices below US$50/ bbl. However, from a forward firstday–tocapacitytocompaniesthisablewilladesthreedowtherecanreasonableprices;surroundingdegreethat(2)andinvestmentsincontractslygeneral,otherthattheseisthisbackground,GuyanasecurerespectiveouslyandtalnificantwillU.Sperspective,developmentmostofthedeepwaterprojectsgoforwardasasigamountofcapihasbeeninvestedoperatorsarevigorrenegotiatingtheircontractstothelowerrates.”RamificationsforAgainsttheforegoingwhatallofmeansforGuyanathat,(1)itisagainstverybackgroundsExxonMobilandoilcompaniesinwillaggressiveseektonegotiateoilleaningmoretheirfavorsincesucharehugeextremelyriskyand,thereisnodoubtthereexistsagreatofuncertaintyfutureoilhowever,withcertainty,onesafelypresumethatmaybeasafewinperiodofanotherdecades–fivedecinwhichcrudeoilremainatsustainprices.Itiswithincontextthattheoilwouldneedscaleupproductionexpeditiously1,000,000barrelsperatleastwithinthedecade.
The Production Sharing Agreement...
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There are currently, huge developments taking place rather rapidly by a number of countries around the world – with the leaders among them, according to the World Economic Forum, are, China, India and the U.S.A – to the extent where; (1) Morocco is building a solar power farm as big as Paris, the country wants to be a major supplier of solar energy and its solar pow er industry is growing rapidly. Morocco will also more than quadru ple its solar power by the end of Australia2018. was set to install a record-breaking amount of solar power in 2018 which is three times more than it did in 2017 thereby increasing its solar capacity by 70 percent in 2018. This outcome is driven by soaring electricity costs in Australia; (3) India has built an airport that runs on solar power; (4) Norway wants all its internal flights to be 100 % electric by 2040. It will launch its first commercial electric air route by 2025; (5) the Netherlands hopes to build the largest offshore wind farm in the world by 2027 along with 2.3-square-mile artificial island to support it; (6) China was set to invest some US$360 billion in renewable energy up to 2020 and is leading a global green revolution. China is the largest producer of solar power; they have installed more wind capacity than the U.S, India and Germa ny combined and has the world’s largest hy droelectric power plant (Cited from the World Economic Forum).
Organization of Petro leum Exporting Coun tries (OPEC) is a central force in the oil market with respect to one of its key roles in seeking to stabilise oil prices. How ever, when analysing its ability to do so (stabi lize the oil market), it is important to consider the nature of the shock driving the change in oil prices and, in particular, whether it is a tempo rary or persistent factor (Dale,The2015).Future of Energy Energy is a funda mental input for eco nomic systems. Current economic activity de pends overwhelmingly on fossil fuels including oil, coal, and natural gas. These fuels are nonrenewable. Renewable sources such as hydro electric, wind, and solar power currently provide less than 10 % of global energy. The speed of the transition to renewable sources will be highly influenced by policy choices. Potential poli cies include increasing energy research and de velopment expenditure, feed-in tariffs, and re newable energy targets. Public policy can also aid in providing capital for renewable energy projects, and in provid ing a robust electricity grid for moving energy long distances (Timmons et.al,With2014).higher energy costs, buildings, trans portation networks and manufacturing would be redesigned to use less energy. Thus, a large portion of the transition to renewable energy will likely be accomplished not by providing new sources, but rather by redesigning systems to consume less energy. An eventual transition to renewable energy is una voidable, so the question is how to best manage it, minimising total cost of energy services plus cost of damages caused by energy utilisation. A combination of con servation and renew able energy sources will eventually replace the current fossil-fuel domi nated energy system. Therefore, addressing climate change suggests that this needs to happen sooner rather than later (Timmons et.al, 2014).
authors.variousbusinesscolumnshassmallbusinesses,pionsnewspaperthatriedtoamducingwithtionthatinglytionGirdharigust(SN)intoREFERENCEBhagwandinismadealetterpublishedtheStabroekNewseditionofAu28,2022,byGarywiththecap“itseemsstrikinappropriatehighestinstituoflearninginbedbiggestrumproenterprise.”IflabbergastedaswhySNevencarthislettergivenitpridesitselfasathatchamthecauseforespeciallybusinesses,andseveralweeklydedicatedtoarticlesbydistinguished
The University of Guyana (UG) is not the Universal Church of Guyana and it’s not an institution for children. It is the premier tertiary academic institution in Guyana where its stu dents are adults. The author sought unashamedly to dis credit one of Demerara Distillers Limited’s (DDL) Corporate Social Responsibility (CSR) initiatives, namely the “DDL Foundation” in partnership with the University of Guyana. To this end, Girdhari went onto to portray this initiative as though it is some grave crime and further implies that the CSR initiative is a facade. By so doing, however, the author ex poses his deep igno rance about DDL’s his tory and the role it has played in the economy – especially through the contributions of the late Dr. Yesu Persaud, an entrepreneurial legend in Guyana.DDL’sCSR activi ties are in no way insin cere or a facade. DDL’s history goes back over 300 years. In 1983 the late Dr. Yesu Persaud played a founding role to form DDL through the merger of Guyana Distillers Limited and Diamond Liquors Lim ited. The late Dr. Yesu Persaud also founded the Institute of Private Enterprise Development (IPED) in 1983 and Demerara Bank Limited in 1994.Todate, these group of companies have con tributed enormously towards building and shaping the economy of today, by creating hundreds of direct jobs, paying billions in taxes over the years, and sup porting the growth and development of thou sands of businesses, as well as supporting thousands of indirect jobs and businesses that depend on the compa ny’s operations through the supply chain and the entire value chain for the past four decades. From an academic perspective, DDL is one of the best companies locally that I often refer students to look at for their case study assign ments for their business management studies and MBA assignments simply because it is one of the best performing companies financially; it’s a public company which means its finan cial and other strategic information are read ily available. The com pany’s management is even accommodative to facilitate students’ surveys for academic purposes.Icanpersonally at test to this because I am a former business and financial management lecturer at various ter tiary education institu tions in Guyana. DDL is also a good case study company to teach entre preneurship and I often use DDL as an example where there are many issues and case stud ies drawing from the company’s growth over the decades that can be used as very good case study examples. I should mention, too, that DDL is one of the best public compa nies for anyone to in vest in stocks right now. I wish to also point the author to another huge initiative that was well covered in the press that DDL is cham pioning, that again, will be for the greater ben efit of the entire coun try. I am referring to the World Trade Centre which is scheduled to open in February 2023. It was reported that DDL, earlier this year acquired the licence for the establishment of the centre. Editor, I wish not to get into the religious debate, I will leave this for another time if deemed necessary.
View point
By Joel
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Britain has dropped behind India to become the world’s sixth larg est economy, delivering a further blow to the government in London as it grapples with a brutal cost-of-living shock.
include Corporate Fi nance, Banking, Capi tal Markets & Secu rities, Financial Risk Management, Business Intelligence & Data Analysis. Joel is cur rently pursuing his sec ond MSc. in Finance (Economic Policy) through the University of London – and simul taneously several pro fessional financial ana lysts’ and risk manager certifications through the Corporate Finance Institute (CFI) and the Global Association of Risk (GARP),Professionalsrespectively.
The Production Sharing Agreement...
The IMF’s own forecasts show In dia overtaking the UK in dollar terms on an annual basis this year, putting the Asian powerhouse behind just the US, China, Japan and Germany. A dec ade ago, India ranked 11th among the largest economies, while the UK was 5th. (bloomb erg.com) massive investments which ultimately means, that these developments are going to have a di rect impact on global oil prices which will be on a downward trajectory, at some point into the future. The ultimate ef fect would be that global demand for crude oil will fall steadily until it will reach to a point where it may no longer be feasible.
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The former British colony leaped past the UK in the final three months of 2021 to be come the fifth-biggest economy. The calcula tion is based in US dol lars, and India extended its lead in the first quar ter, according to GDP figures from the Inter national Monetary Fund.
The UK’s decline down the internation al rankings is an un welcome backdrop for the new prime minis ter. Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss ex pected to beat former Chancellor of the Ex chequer Rishi Sunak in the Therun-off.Indian economy is forecast to be a fifth larger than the UK by 2027The winner will take over a nation facing the fastest inflation in four decades and rising risks of a recession that the Bank of England says may last well into 2024. By contrast, the In dian economy is fore cast to grow more than seven per cent this year. A world-beating re bound in Indian stocks this quarter has just seen their weighting rise to the second spot in the MSCI Emerging Mar kets Index, trailing only China’s.Onan adjusted ba sis and using the dol lar exchange rate on the last day of the relevant quarter, the size of the In dian economy in “nomi nal” cash terms in the quarter through March was $854.7 billion. On the same basis, UK was $816Thebillion.calculations were done using the IMF database and historic exchange rates on the Bloomberg terminal.
The UK is likely to have fallen further since. UK GDP grew just one per cent in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1 per cent. Sterling has also underperformed the dol lar relative to the rupee, with the pound falling eight per cent against the Indian currency this year.
UK Slips Behind India to Become World’s Sixth Biggest Economy
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Joel Bhagwandin is a finance profession al and researcher, a junior business execu tive and entrepreneur, lecturer and thought leader. Joel is actively engaged in providing insights and analyses on a range of public policy, economic and macrofinance issues for the past 5+ years. In this regard, he has authored more than 300 articles covering a variety of thematic areas in public policy and macrofinance. Joel has more than four teen years’ experience in banking, corporate finance, specialtiesNapiering)Managementofwandindemically,demicconsulting,management,andacaresearch.AcaMr.BhagistheholderaMSc.inBusiness(BankfromEdinburghUniversity.Hisandskills
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