Sugar earnings down by US$10M
In the wake of slumping sugar production, the government is projecting growth in the economy of only 2.5% this year compared to the originally estimated 4.7%.
Dr Ashni Singh
In the half-year report tabled in Parliament yesterday, Finance Minister Dr Ashni Singh noted that the 2009 budget had estimated the real growth of the non-sugar GDP at 1.8% and overall growth at 4.7%. Given sugar’s dismal performance to date, these figures are now 1.5% and 2.5% respectively.
Singh’s report, which was statutorily due by August 30, 2009 and was dated September 25, 2009 when it was presented to Parliament yesterday, said because sugar returned the lowest first crop figure in a decade the overall real output for the 1st half this year had declined by 1.4%.
The 83, 357 tonnes of sugar produced in the first half was 19.3% below last year’s performance. “Higher than expected rainfall has been cited as a factor hindering the harvesting of canes. In some fields, this caused an overflowing drainage system, which encroached upon planted canes, either destroying or rendering them difficult to harvest”, Singh lamented. He noted that these conditions would also affect the second crop to the extent that the annual production target would be slashed to 249,521 tonnes compared to the original budget projection of 290,000. Industry insiders have since said this figure has been cut further to 234,000 tonnes amid a wave of strikes and other problems.
Earnings from sugar were also significantly down. Singh said that export earnings registered a 17.2% or US$10M decline from last year June’s figure of US$57.8M. This was attributed to a 13.7% drop in the export volume due to lower production and a decline in the average export price of 4.1% due in the main to the second phase of cuts – 9% – in the price for sugar under the Sugar Protocol.
Rice
Singh said that rice output was budgeted to decline by 7.1% due to weather and market conditions. However, because of more favourable weather the first crop at the end of June 2009 yielded 160,868 tonnes translating into a lower shortfall of 6.7% as compared to the 2008 first crop. He said that the annual target is being maintained at 306,156 tonnes – reflecting the drop of 7.1% – even though the sector has signalled the possibility of higher output.
Rice export earnings however amounted to US$59.4M – 17.6% – above the US$50.5M notched up in 2008. This was attributable to the 37.6% rise in the amount of rice exported which offset the 14.5% drop in the average export price.
Bauxite
Bauxite witnessed a steep output decline of 31.8%. With aluminium prices remaining below 2008 levels, bauxite output is now projected to slump by 22.1 percent compared to 2008 levels. Bauxite export earnings dropped by US$26.1M. This was as a result of production falling from to 740,142 tonnes from the 1,214,891 tonnes at the end of June last year.
Gold declarations at 131,550 ounces amounted to a 7.7 percent rise over the June 2008 figure. Diamond output rose for the first time in two years by 5.9% to a record of 87,346 metric carats. Gold exports raked in US$119.8M, some US$17.4M over the preceding year.
In the timber sector, the half-year report said that the improvements in compliance by harvesters with new enforcement and management mechanisms as well as better weather conditions influenced a marginal growth of 0.3% in the forestry sector. The value of timber exports –US$16.5M – was however 30.9% below the figure for the comparable period last year.
With the global meltdown, the report said that inflationary pressures have remained low and as a result the inflation target has been scaled back from the projected 5.2% to 3.2%. The figure was 1.3% for the first half.
Central government revenues totalled $48.4B for the first half or $6.1B above the 2008 figure. Value added and excise taxes equaled $21.3B as opposed to $17.6B at the end of the first half of 2008.
Guyana’s total external debt climbed by US$27.2M from December 2008 to June 2009. In the first half of the year actual debt service payments totalled US$6.8M, down by 22.5% from the 2008 figure of US$8.8M. The drop in debt service, the half-year report said, was attributable to a decline in central government repayments by 39.8% as a result of debt relief obtained from the IDB and the World Bank under the Multilateral Debt Relief Initiative.
It is cut because the world is still in a financial crisis.
G.D.P. declines.
Sugar production declines.
Rice production declines.
Bauxite production declines.
Poverty and crime increase.
Hardship for the Guyanese people increases.
Vote for the Cup and watch Guyana’s “stagnation”.
World economy is stabilizing.
Bora, pon tap of de revenue decline in bauxite, rice, sugar and timber, notice dat de peeple still had to fark ovuh mo money fuh VAT fuh de carrespandin peeriod las year! Check dis out:
“Central government revenues totalled $48.4B for the first half or $6.1B above the 2008 figure. Value added and excise taxes equaled $21.3B as opposed to $17.6B at the end of the first half of 2008.”
See wuh meh sehhing hay suh? Despite drop in sales or income from bauxtie, rice, sugar and timber from January to June dis year, guv’ment revenue still went up by $6.1B compared to de same peeriod las year. Weh dis extra money come from?
Dr. Value Added Tax brought in 21.3B from January to June compared to 17.6B fuh de same period las year. Fuh 2008, VAT accounted for over 60% of guv’ment revenue. Baai, all meh gat fuh seh is dat when de formal economy is not wukkin guv’ment still mekking money pon de backs of po peeple! Ah tink if ovaseas Guyanese stap sendin money and peeple gat less fuh spen, it gun start street riots and de guv’ment gun eidah get its act togedduh or rezine in disgrace.
Smells like a ‘plausible” excuse is being made for the hurried disbursement of the climate change funds.
Got to watch them boys, Norway.
gold is expected to reach US$2,000 an ounce in the next year or so.
the largest earner, more emphasis should be place in the industry.
Good going mr. singh, guyana is doing real great, in the world market,and we owe it all to you.
we are doing good, BD has a NEG. 4.4 for the last quarter
Mr. Singh has nothing to do with the GDP, only to do the accounting and reporting. The workers of Guyana does all the work for the lowest pay. Could you imagine if no one in Guyana decided not to work? Then Mr. Singh could not get a large pay day.
The lowering of GDP projections from 4.7% to 2.5% mainly because of dismal sugar output should give GAWU and Komal Chand a tough bone to chew on. How do they feel when they not only deprive the nation of much needed foreign trade income but also provide fuel for the trenchant anti-government fault finders. Next time think before you strike, comrades. Be content with the milk that Guysuco the cash cow provides; do not demand the meat too.
lol, ha ha, lmao, good one you soup drinker.
Its not about “fault finding or nit picking”,… when the President and the govt faults are staring the ordinary Guyanese in their faces day in and day out, they dont have to look for faults in this govt the faults of jagdeo govt finds them.
They must take it like sheep and bare their chafe,… thats what the flock of their mesiah wants??? then everything kosher??? thought Guyana was a democracy!!!,.. “there is going to be oppositions to hold the govt accountable for their actions”.
its despicable the way some govt supporters dont want Guyanese living in Guyana to enjoy the same democratic rights they are enjoying in “another mans country”. Its as if these so called Guyanese dont want Guyanese back in Guyana to have a better standard of living or a good Governance.
The govt is accountable to the people and not to them selves,- some Guyanese living so long abroad they dont actually know whats going on at the grass roots level in guyana,.. AND THEY HAVE NOT LEARN ANYTHING LIVING IN ANOTHER MANS COUNTRY, “SEEING HOW ITS DONE” THE CITIZENS IN THEIR ADOPTED COUNTRY DONT TAKE BULLS FROM THEIR GOVT. They govt in the developed countries have to explained their actions to the people.
YASUMAN71
It is people like you who fail to realise it is the people who run the country, not the Government. PEOPLE POWER!! The people are beginning to see th eGovernment for what they are. Only a matter of time. This is about a nation, not race, or political party. SAVE GUYANA. IF YOU NOT A GUYANESE STAY OUT. A TRUE GUYANESE WOULD NOT HURT HIS?HER FELLOW GUYANESE.
To you keep drinking soup
…. and all are supporters of the ppp, all are responsible for the prosperity of guyana, so it’s safe to say that they all contributed to guyana’s continued demised.
Where were you when the same thing was taking place during the PNC time in office ?, It is the same GAWU members and the PPP opposition supporters were burning down the young sugar cane and sabotaging the sugar factories, they are the same people who were depriving the nation of much needed foreign trade income then and according to your blog they never STOP
my friend yasuman71.
Why was this report “dated September 25, 2009″ but presented almost two months later?
USA, CANADA and Europe expects negative GDP. Guyana is still growning. Some of you need to wake up.
see the report on Jamaica, the worst in the caribbean. BDS at a NEG.4.4 in the last quarter.
freespeech, thats jamaica business. the pee pee pee don’t run jamaica. stick to facts man as reported by SN’s. guyana is sinking fast
show us one report that says those countries are expecting negative growth in the quarter. all the countries u mentioned are expecting growth in this Q and next year.
only global warming can sink guyana, and only the coast line don’t you forget that. on the other hand , there were no foreclosures, no bank went under and no massive unemployment.
our heads are still above the waters.
EX- Stop comparing a “failed and economically depressed 3 world country with the developed nations.
The unemployment rate in Guyana is about 20%.
Freespeech – Thank you.
You guys are forgetting that Jagdeo had said earlier that the world situation would not have affected Guyana. Why compare our decline to those of other countries when those countries admitted from day 1 that their economies were vulnerable to the world-wide crisis?
yasuman when las u went to guyana? when u see black please say it is black and stop calling it red