…Guyana’s financial sector expected to grow by 7% in 2023 – PM
Accompanying the astronomical economic growth in Guyana, has been the expansion of the financial sector, which, according to Prime Minister, Brigadier (retired) Mark Phillips, is expected to grow by seven per cent this year.
The Prime Minister made this disclosure during the opening of Assuria Guyana’s $1 billion head office on Church Street, Georgetown, over the weekend. According to Phillips, Guyana is unique in its ability to weather global financial storms and this year, will register even more growth in its financial sector.
“Insurance is an important segment of our country’s financial sector. Up to five years ago, insurance companies accounted for 9.5 per cent of the total assets of our financial sector,” the Prime Minister said.
“It is therefore essential that there be continued and strong management and regulation of the sector. We anticipate financial sector growth of around 7 per cent this year. With a growing economy, the prospects are bright for our local insurance companies.”
Assuria Chairman Mario Merhai
The Prime Minister also noted that in recognition of the important role insurance companies play, the Government has taken steps through local content legislation to support the local insurance industry and help them capitalise on the oil and gas sector. In fact, the Prime Minister noted that Guyana’s resilient financial sector is no accident but rather, the product of careful planning by the People’s Progressive Party/Civic (PPP/C) Government.
“Unlike many countries, we’ve not had a financial meltdown or implosion. We survived the global financial crisis of 2007, 2009, relatively intact. This is not by accident. Our Government has long taken steps to improve the regulation of our country’s financial sector.”
“The passage of the Financial Institutions Act, has helped to strengthen oversight and improve the regulatory control of our country’s financial sector. Financial inclusion has been strengthened through the establishment of the credit bureau and instituting the Credit Reporting Act,” Phillips also said.
Assuria
Meanwhile, Assuria Guyana’s Managing Director Yogindra Arjune reflected on Assuria’s progress since they came to the Guyana market in 2012. From having just four staff, he said Assuria is now among the top three insurance companies in Guyana.
“When we opened to the public in March of 2012, we had four staff members and zero clients. Assuria came to Guyana when Clico ceased operations. We came to bring capacity and partner with the existing insurers to serve the Guyanese public.”
“Our mission was to become a trendsetter. And I can confirm we did not disappoint. As I stand here, we have 82 staff members, 16 full time agents, nine locations countrywide. All our staff and agents are Guyanese. And we serve over 20,000 clients,” Arjune said.
The Managing Director also described the building as a testament to Assuria’s rise in Guyana as an insurance company, as well as its commitment to providing the best possible service to the people of Guyana.
Chairman of the Supervisory Board of Assuria, Mario Merhai, meanwhile noted that the $1 billion investment into the building demonstrated Assuria’s commitment to Guyana and its faith in the country’s future.
“It also demonstrates what can be achieved if our countries worked together and effectively pooled the resources we have. This building is living proof of Surinamese and Guyanese partnership,” he said.
Guyana’s economic growth has consistently been outpacing other Latin American and Caribbean (LAC) countries. In fact, with the International Monetary Fund (IMF) projecting Guyana’s growth rate at 37.2 per cent for 2023, Guyana is the world’s fastest growing economy at the moment.
In the IMF’s World Economic Outlook, which it released earlier this year, St Vincent and the Grenadines (SVG) had the next highest growth projections for this year among the other LAC countries, at 6.0 per cent. But while SVG’s growth projections are expected to fall next year to 5.0 per cent, Guyana’s is expected to increase to 45.3 per cent in 2024.
Meanwhile, other LAC countries that will record single digit economic growth this year include Panama at 5.0 per cent, neighbouring Venezuela at 5.0 per cent, Dominica at 4.9 per cent, St Kitts and Nevis at 4.5 per cent and the Dominican Republic at 4.2 per cent. (G3)
