Economy grew 3.2%, gold export earnings down 25% – Mid-Year report

Minister of Finance Dr Ashni Singh today released the Mid-Year report on the performance of the economy and pegged GDP growth at 3.2% but the vital gold sector is in the doldrums and export earnings from the precious metal were down 25%.

Below are some of the highlights provided by Singh today.

Key Achievements in the First Half of 2014
• The economy recorded overall growth of 3.2 percent in real gross domestic product in the first half of 2014, within which non-sugar GDP grew by 2 percent.
• The economy is now projected to grow by 4.5 percent in the full year 2014, with non-sugar growth now projected at 3.6 percent.
• The rice industry continues to achieve an unprecedented production boom, with production in the first crop of 312,283 tonnes, 18.3 percent over last year’s record high first crop of 263,868 tonnes.
• Sugar production in the first crop of 79,995 tonnes was 66.5 percent above the 2013 level.
• The forestry sector recorded robust growth of 38.1 percent, supported by the introduction of new incentives to harvesters.
• Gold declarations contracted by 17.2 percent at the half year.
• Manufacturing output grew by 11.2 percent driven by increased levels of production for sugar and rice.
• Construction sector recorded an extremely strong 16.8 percent growth reflecting both public and private sector activity
• Wholesale and retail, information and communication, and financial and insurance activities recorded growth of 6 percent, 3.5 percent and 2 percent respectively.
• The overall balance of payments deficit improved to US$93 million, compared to US$145.6 million at half year 2013.
• Excluding gold, total exports grew by 4.3 percent to US$307.5 million in the first half of 2014.
• Sugar exports returned US$34.4 million in earnings, a 26.4 percent increase.
• Rice export earnings increased to US$95.6 million, 14.9 percent higher than at June 2013.
• Timber export earnings rose to US$21.3 million, a 31.3 percent increase
• Gold exports earnings contracted by 24.6 percent to US$226.7 million.
• Net domestic credit by the banking system to the private sector grew by 2.9 percent.
• Credit growth was driven by the mining, construction & engineering and real estate sector which expanded by 10.3 percent, 7.6 percent, and 7.5 percent, respectively.
• Credit to rice milling, other services and manufacturing also expanded by 6.4 percent, 5.4 percent and 4.9 percent, respectively.

• The consumer price index has declined marginally from the December 2013 level by 0.4 percent, reflecting continued stability in major commodity prices in the domestic marketplace.
• The non-financial public sector recorded a surplus of $1.7 billion after grants in the first half of 2014.
• As at end June 2014, Guyana’s total external public debt stood at US$1.23 billion which was 1.6 percent lower than at the end of 2013.
• At the end of June 2014, Guyana’s domestic debt stock stood at US$422.7 million which was 11.8 percent below the end 2013 position.

Latest in Local News

default placeholder

Crane man shot after chopping wife, child to death

A man this morning chopped his wife and two-year-old child to death at Crane, West Coast Demerara and wounded his mother.

default placeholder

Brian Tiwarie blasts Ramotar administration over specialty hospital project

Businessman Brian Tiwarie yesterday rejected claims that his company had taken possession of containers belonging to the fired Specialty Hospital contractor and he accused the Donald Ramotar administration of grossly mismanaging the project.

The Kato school

Multimillion-dollar Kato school unsafe for children

The Kato Secondary School, which was constructed at a cost over hundreds of millions of dollars, remains unoccupied because it is not safe for children, Minister of State Joseph Harmon said yesterday.

default placeholder

Repairs underway to shifting Hope Canal bridge

There is a major structural fault with the $350m bridge constructed across the Hope Canal,  East Coast Demerara, according to Minister of State Joseph Harmon, who yesterday said the structure has repeatedly shifted away from the road.

default placeholder

National Assembly approves $800m in supplementary spending

After hours of deliberations, the National Assembly last night approved almost $800 million in extra-budgetary spending including on 6000 solar panels to “green” State House and an army exercise aimed at testing the preparedness of the Guyana Defence Force which was done last year.

default placeholder

Brian Tiwarie planning to establish newspaper

Prominent businessman and owner of BK International, Brian Tiwarie, is planning to open his own newspaper company here and has started the process.

default placeholder

Probe underway into stealth flights from Ogle

An inquiry has been launched into the circumstances surrounding how two planes left Guyana illegally from the Eugene F Correia International Airport (EFCIA) last Saturday, Minister of State Joseph Harmon said yesterday.

default placeholder

Finance Minister says unsure of UG ‘emergency’ funding needs

Minister of Finance Winston Jordan has said that he is unsure of the ‘emergency’ funding the University of Guyana needs to reputedly prevent a collapse of the  institution.

Comments

About these comments

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 or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Stay updated! Follow Stabroek News on Facebook or Twitter.

Get the day's headlines from SN in your inbox every morning: