Global economic disruptions: Cost of living will come down as world continues to normalise – VP Jagdeo

Worldwide crises have over the past few years disrupted supply chains and driven up commodity prices, but Vice President Bharrat Jagdeo is optimistic that as the world, and particularly, China, normalises, so too will commodity prices in Guyana.
During a recent broadcast interview, Jagdeo spoke about how disruptions to supply chains have impacted commodity prices. He also referenced China, which is in the middle of lifting its COVID-19 restrictions following public outcry.
“We’ve seen an abatement in global prices a bit now because oil prices have come down. And supply chains are getting better, with the opening up of China. China will go through a difficult period. They’ve just removed COVID restrictions. They’ll have to go through what we went through, with a massive overload of hospitals, before they normalise.”
“But once they normalise and it becomes like they have herd immunity, we should see like a massive return back to the reliable supply chains that we had before COVID, which kept the prices down. So, we’re hoping that a lot of these things will be addressed soon.”

Jagdeo noted too that the Government has been focused on the development and the welfare of the people from multiple perspectives… not just the cost of living.
“We’re very pleased about the big policy changes we’re making too. And getting these major things that require a lot of technical work, going. Whilst we’re not forgetting the concerns of our people. The roads, the water and so. The electricity and all of that.”
“So, it’s not just focusing on those things. It is focusing on balance. The big things that will transform, whilst trying to improve lives and adjust to unexpected things. Like the cost of living,” he said.
During the first half of 2022, global oil prices surged more than 50 per cent. In fact, oil prices rose as high as US$137 per barrel primarily as a result of the Russian invasion of Ukraine earlier this year.
The Government has made efforts to address oil prices and as of October, prices at the pump had been brought down to $215 a litre. Other efforts to cushion the rise in food prices have included the distribution of $1 billion in fertilisers to farmers countrywide.
Since taking office in 2020, the President Dr Irfaan Ali-led Administration has introduced several measures to put more disposable income in the pockets of Guyanese. From the onset, Value Added Tax (VAT) was removed from water and electricity. There has also been an increase in old-age pension and public assistance, putting $2.3 billion and $432 million, respectively, into the pockets of Guyanese.
Additionally, the PPP/C Government reinstated the “Because We Care” cash grant and school uniform cash grant which stands at $30,000 per child in both public and private schools.
In addition, a $25,000 per household cash grant was rolled out to assist families struggling during the pandemic.
Moreover, the Government announced a one-off cash grant of $25,000 to all pensioners and almost 65,000 persons benefitted; this measure placed a total of $1.6 billion in disposable income into the hands of the elderly population.
A one-off grant of $25,000 was also given to all public assistance recipients and persons living with disabilities. This grant benefited about 25,000 persons and placed more than $600 million in additional disposable income in their hands.
Furthermore, a one-month free electricity for households consuming not more than 75 kilowatt per hour a month was announced – a measure that was intended to benefit some 40,000 households. In total, these measures provided $2.6 billion worth of additional support to vulnerable groups.