Mid-year growth is reflection of PPP/C’s grasp of management of economy – Edghill

The Finance Ministry’s Mid-Year Report for 2021 has revealed that Guyana recorded real Gross Domestic Product (GDP) growth of 14.5 per cent, and Minister of Public Works, Juan Edghill, has said this growth solidifies the fact that the Irfaan Ali-led administration is best suited for the management of Guyana’s economy.
Despite the challenges of the COVID-19 pandemic and the devastating May-June floods that wreaked havoc throughout the country, Guyana still recorded a 4.8 per cent growth in its non-oil sector. Edghill said the economic growth is in keeping with the People’s Progressive Party’s track record of defying the odds.

“It is not unusual for a PPP/C-led administration to be able to manage the affairs of state in such a way that they’re able to achieve growth during some of the harshest and most difficult times. We will recall during the world’s hardest hit food crisis, during the world’s hardest hit fuel crisis, and all that was happening in the world, Guyana, under the leadership of the PPP/C pre-2015, for 10 consecutive years recorded positive growth,” the Minister said during a talk show appearance last week.
Edghill, who served as Minister within the Finance Ministry from 2011-2015, said this is the first full fiscal year for the PPP/C since its election to office in August of 2020, so with the Mid-Year Report, Guyanese are now given the information to judge the performance of the economy in an overarching manner, and assess sector by sector what has been happening.
He added that the report was prepared after the Finance Ministry received all the information on the performance of the economy in terms of real growth, and compared that with what was projected.
The Minister said the PPP/C took the reins of government during a crisis, referring to the COVID-19 pandemic, and immediately began to strongly lead. He noted that because of the COVID-19 measures and sloth of economic activities across the world, most countries have recorded tremendous losses.
“We took Guyana, which already had been hard hit by the maladministration and lack of competence in the management of various sectors, and basically brought her back to a place of stability that today we are discussing double-digit growth. That is no small achievement, and must not be taken lightly. So, we were able to bring it back,” Edghill noted.
Addressing some of the challenges faced by the economy, Edghill said the May-June 2021 floods were more devastating than the 2005 floods, since the previous floods largely affected agriculture, whereas the most recent flooding affected operations in every sector.
“We had flooding that affected mining; the pits were flooded. Flooding that affected forestry. So, whether it was gold mining or sand mining – because some of the sand pits couldn’t operate – the forestry sector; agriculture in terms of crops: rice, sugar, other crops, livestock; everything was affected in all 10 Regions of Guyana. We’ve had the opportunity because of social media and because of the extent to which people now have reach and coverage to see firsthand the devastation that the floods of 2021 brought,” he said.
He commended the Government for finding the fiscal avenues to ensure that every Guyanese benefit from COVID-19 relief, as well as those affected by the flooding receiving cash grants to get back on their feet. He also made reference to the financial support for pensioners and those on public assistance, and the “Because We Care” cash grants for school children as things the Government is extremely proud of during its first year in office.
“(We took) a country that was hanging on for survival, pulling her through a pandemic, stabilising her for takeoff, and then got another blow that basically affected everything in the non-oil sector; and in a half year report, reporting 14.5 per cent overall growth, and in a non-oil sector 4.8 per cent is enough reason for all of Guyana, those who supported the PPP/C into office and those who did not support it, to say these guys know what they’re doing. They seem to have a good grasp of the management of the economy
“So, you’re not just talking here about a mid-year report in a normal year where everything is equal. You’re talking about a midyear report on the stress of the COVID-19 global pandemic and your own internal challenges of unusual weather patterns that devastated and wreaked damage in all 10 Regions, not to mention the physical infrastructure that was damaged – roads, bridges, drainage systems, all of that had to be taken into account.
“So, the management of Guyana, this report is basically saying Guyana is in safe hands; because anybody could drive, but it is the really good drivers who take you safely through the storm,” Edghill said.
The Mid-Year Report noted that at the end of the first half of this year, ‘the overall balance of payments recorded a deficit of US$67.4 million compared with a deficit of US$2.8 million at the end of June 2020, with the current account registering a deficit of US$39.1 million in comparison to a deficit of US$396.5 million for the corresponding period in 2020. This was attributed to a ‘significant increase in the merchandise trade surplus, which moved from US$72.7 million to US$813.3 million.
The Merchandise Trade Account, according to the Report, improved as a result of export receipts expanding by US$786.9 million, outweighing the US$46.2 million increase in imports.
Meanwhile, the Capital Account showed a deficit of US$19.6 million when compared with a surplus of US$419.7 million at the end of June 2020. This is attributed to ‘outflows of US$1,713 million from private enterprises in the oil and gas sector, along with outflows of US$123.6 million in revenue from the petroleum sector to the Natural Resource Fund’.
The Report also highlighted the fact that foreign direct investment in the first half of 2021 was 41.6 percent higher than the US$940.6 million recorded last year for the same period.
The revised full-year forecast for real GDP growth in 2021 is now 19.5 percent overall and 3.7 percent for the non-oil economy. (G2)