Why Guyana dodged the 2007-08 financial crisis?

Part 1


Introduction

Several Guyanese leaders have exalted the fact that Guyana emerged largely unscathed from the global financial crisis which broke in the summer of 2007. Of course, Guyanese investors lost money in the CLICO investment but those losses were largely restricted to that entity. The banking system continued to be liquid and well capitalized. The exchange rate remained stable and there was no rapid flight of capital from Guyana. GDP growth – although based on the global commodity boom and notwithstanding the crisis in the sugar belt – picked up some steam. As I have always said in these columns there is high- quality growth (based on structural production change) and low-quality growth (based on transient commodity price booms). High-quality growth is sustainable into the very long-term, while the low-quality form is volatile and is unlikely to be sustainable long into the future. …..To continue reading, login or subscribe now.



Join the Conversation

After you comment, click Post. If you're not already logged in you will be asked to log in or register.

The Comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit/delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity. We moderate ALL comments, so your comment will not be published until it has been reviewed by a moderator.