Govt aims for Guyana to reach US$30,000 per capita GDP by 2030 – VP Jagdeo

– says diversifying economy an important part of strategy

Reducing poverty continues to be one of the Government’s priorities and as such, Vice President Bharrat Jagdeo related that with the policies implemented by the Government, Guyana is hoping to achieve a US$30,000 per capita Gross Domestic Product (GDP) by 2030.

Per capita GDP is used to compute the average earning power of citizens by group. According to the Vice President, the government has a plan it is following reach to the level of US$30,000 per capita.
“How are we going to lay out the plans so that our country becomes transformed in the future economically? Our per capita GDP, we’re targeting about US$30,000 per capita by 2030. It would probably be about US$35,000 per capita.”
“It means that we will be like half of the per capita GDP of the USA. I recall the early days when I was Minister of Finance. Our per capita GDP was US$300. Close to Haiti. Haiti today is probably $500, $600. And ours, now we’re about US$17,000 per capita,” the Vice President said.
According to Jagdeo, an important aspect of their strategy is diversifying the economy. This means focusing not just on oil and gas, but on other sectors like agriculture. Jagdeo gave the example of corn and soya, which he said will one day be exported.
The Vice President also urged persons not to succumb to the victim mentality encouraged by the A Partnership for National Unity/Alliance For Change (APNU/AFC). He also applauded those who ignore the opposition’s messages and utilize the opportunities that are provided by the state.
“I keep saying to people. Don’t ever believe you’re a victim. If you start believing you’re a victim and negative propaganda, then you become a victim. You have to utilize every opportunity in society.”
It was revealed in September by the mid-year report that Guyana’s real Gross Domestic Product (GDP) grew by 36.4 per cent for the first half of 2022, on the back of growth in a number of economic sectors such as the agricultural and mining sectors.
According to the report, in addition to Guyana’s GDP growth, non-oil economic growth was 8.3 per cent. This, according to the Finance Ministry, reflects the Government’s supportive policy. In addition, the outlook for the rest of the year will continue to be favourable.
Finance Minister Dr Ashni Singh noted that upon the assumption of the office by President Irfaan Ali-led Government, the Administration recognised the importance of a strong, diversified economic base. As such, even in the early days of oil production, the administration placed the highest level of importance on a resilient non-oil economy.
The aim, according to Dr Singh, was to modernise the economy’s traditional economic pillars and usher in a rapidly growing and highly competitive non-oil economy. This, he noted, is evident in the nation’s non-oil economic growth at the end of the first half.
While the economy has grown and is projected to keep growing, so too is inflation… in light of the fallout from the Russian invasion of Ukraine, which has exacerbated disruptions in the supply chain and has resulted in global surges in food prices.
“Guyana has not been spared. Consumer prices were 4.9 per cent higher than levels recorded at the end of 2021 and this was due largely to higher food and energy prices… Given the existing geopolitical tensions globally, inflation is now projected to be 5.8 per cent for 2022,” the Ministry said.
The mid-year report also recounted the various measures the Government adopted, such as reducing the excise tax on petroleum from 20 per cent to 10 per cent at the time of Budget 2022 presentation. This was reduced even further from 10 per cent to 0 in March.
“Additionally, Government also utilized $1 billion for the purchase and distribution of fertiliser to farmers across the country, $800 million to provide cash grants to households in the hinterland and riverine communities, among a number of other interventions,” the Ministry had also explained.