Guyana – Ripe for Investment OVERVIEW Guyana is a small open economy, with GDP of about US$3.4 billion and a population of approximately 775,000. Guyana is pursuing a Green Agenda, which spans social, environmental and economic sustainability issues, to ensure that our growth today does not come at the expense of future generations. Guyana is making investments in renewable energy sources, and reducing its carbon footprint. Guyana is on the verge of realizing a massive economic transformation and as such, there is a natural tendency for anyone to focus on the sector which is expected to drive this transformation – the oil and gas sector. Guyana however is coming off the back of a decade of robust economic growth. With a continued thrust on this upward trajectory, the development prospects continue to be bright. A. INVESTING IN GUYANA Guyana boasts, as an investment destination, the following: • A market economy and market-friendly policies • Stable Macroeconomic Environment • Low Inflation • Stable exchange rates • Sustainable levels of public debt • Friendly outlook toward foreign investors • Availability of Land, particularly in the sub-urban, peri-urban and rural districts • Outside of Hurricane belt and not susceptible to natural disasters • Easy access to information from private sector umbrella bodies • Minimal threat of mass violence, war or political upheavals B. SECTORS FOR INVESTMENT Guyana boasts a number of key sectors which can be invested in, including: 1. Entertainment; 2. Tourism & Hospitality including a. eco-tourism; b. education tourism 3. Mining Sector 4. Minerals and Precious Metals 5. Forestry, 6. Agriculture 7. Aquaculture 8. Construction 9. Information and Communications Technology (ICT) 10. Oil & Gas 11. Agro-Processing and Manufacturing
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C. SOME PROJECT IDEAS BASED ON GUYANA’S PRIVATE SECTOR NEEDS 1. The development of a Deep Water Harbor; 2. Investment In Solar and Renewable Energy 3. Central Agro-Processing and Packaging Unit for Cash Crops, 4. Cold Storage and Warehousing facilities, 5. Investment in Transportation, particularly air and water transport 6. Equity Investors For Startup entities MACROECONOMIC ENVIRONMENT OF GUYANA IN 2018 1. Real Sector Guyana’s economy grew by 4.1% during 2018, compared to 2.1% for the corresponding period in 2017. The Global Growth rate for 2018 was 3.7% The growth in Guyana was mainly as a result of an increase in the Construction Sector (11%), Livestock Sub-Sector, Mining & Quarrying (2.9%) – especially Bauxite (24.6%) and the Services Sector (4.5%) – by extension Wholesale and Retail Trade (8.1%) and Financial & Insurance Services (5.2%). 2. External Sector The overall balance of payments recorded a deficit of US$132.2 Million in 2018, compared to a smaller deficit of US$69.5 Million during the same period of 2017. This was as a result of the worsening of the Current Account position due to a higher Merchandise Trade deficit and Balance on Net Services. 3. Monetary Sector Inflation, as measured by the Consumer Price Index (CPI) for Georgetown, was recorded at 1.6% at December-end 2018. The main driver of inflation continues to be Food Prices and in addition Transport & Communication. Private sector credit balance (loans) as at December-end 2018 was G$233.6B compared to G$224.2B at end 2017, representing a 4.2% increase. Non-Performing loans increased by 2.6% from GYD$ 28.97 Billion to GYD$29.72 Billion in 2018. 4. Fiscal Sector Central government’s total revenue for 2018 was GYD$ 216.7B compared to GYD$ 195.06B for 2017, an increase of G$ 21.64 B or 11.1%. Total Tax revenue increased by 16% during 2018 while Non-Tax Revenue declined by 22.6% during the review period. Capital Expenditure was GYD$ 55.12 during 2018 compared to GYD$ 58.61 B for 2017, a 6% decline. The balance on Central Government account recorded and overall deficit of GYD$ 27.28 Billion. This overall deficit represents an improvement of the Government’s Fiscal Deficit by 16.7% over the –GYD$ 32.76 Billion witnessed in 2017.
GUYANA: POTENTIAL UNLEASHED | BUSINESS GUYANA