Early concerns
The early concerns that the Guyana economy has slowed down and that the growth for 2015 would at best be sluggish remain valid even after a round of salary increases. Countries experience a slowdown in economic activity when there is a reduction in spending by the major economic actors. The macroeconomic lessons tell the interested that there are three principal categories of economic agents in the economy. These are households, businesses (direct investors) and government. While spending by all categories is important, in tough economic times, and in an economy like Guyana’s, the spending by the government and households matter the most. In the case of Guyana, the combined spending by government and households amount to about 90 percent of all spending done in the economy. This implies that the behaviour of the government has significant impact on what happens to households and businesses, and the general welfare of the people. A government therefore should pay keen attention to its spending and that of households. They are important in any attempt to give the economy a boost. Nonetheless, Guyana’s traditional heavy dependence on foreign financial inflows
