More local production is key to cushioning global price shocks – Head of State

President Dr Irfaan Ali has said Guyana’s long-term economic strategy will focus on increasing domestic production, expanding infrastructure, and diversifying the economy to reduce the country’s vulnerability to external shocks.
Speaking on the country’s Mid-Year Economic Report, Ali said the Government is pursuing investments intended to lower costs, strengthen productive capacity and create greater economic resilience.

He said part of the Government’s strategy is to reduce electricity costs through large-scale infrastructure projects, with the public expected to benefit from those investments over the medium and long term.
Among the projects highlighted was the Gas-to-Energy (GtE) Project, which Ali said is intended to eventually reduce energy costs by approximately half, making the economy more competitive and expanding opportunities for households and businesses.
Investments are also being advanced in areas including the Amaila Falls hydroelectric initiative, industrial hubs, agro-processing facilities and farm-to-market roads.
“All of this will lead, while not immediate, to the medium and long-term benefit of the Guyanese people,” he said.
Agriculture remains a central component of the Government’s strategy to tackle inflation and strengthen economic resilience.
According to Ali, the Government plans to establish farmers’ markets across the country in an effort to reduce the price transfers between wholesalers and retailers and improve consumers’ access to affordable food.

Farmer’s Market
He said a Farmer’s Market Day will be held at the Sophia Exhibition Centre next Wednesday, where consumers will be able to purchase produce at affordable prices.
“We are going to launch the farmers markets across the country to ease the price transfers between the wholesale and retailers,” Ali said.
The President said the Government is also examining opportunities to increase local production of food items currently being imported.
“We are looking at onion production in Guyana. We are looking at the production of potatoes. We are looking at the production of more of what we consume,” he said.
Plans are also being pursued to increase production of red beans, black-eyed peas and soya beans, while developing value-added products such as soya oil.
Ali said efforts are also being made to expand poultry production and establish local capacity for producing hatching eggs.
The broader objective, he said, is to build sufficient productive capacity and storage infrastructure to absorb future shocks without major disruptions to prices.
“We have to ensure that we always have a buffer,” Ali said.
He noted that building resilience requires investment not only in production but also in storage facilities.
A similar approach is being pursued in the beef industry through measures aimed at improving supply chains and supporting livestock producers in hinterland regions.
Ali also pointed to financial inclusion and household wealth as areas in which the Government continues to advance.
He said increased banking activity and growth in account ownership provide longer-term benefits, responding to claims that many new accounts were opened primarily to receive Government cash grants.
“A bank account itself is empowering. If one understands basic financial empowerment, they would understand the importance of a bank account and how a credit relationship is developed,” he said.
The Government is also targeting vulnerable groups through housing programmes designed to assist families facing severe economic hardship.
Thousands of households are expected to benefit from social housing initiatives, while Ali pointed to increases in savings, housing ownership, access to loans, use of financial services and educational attainment as indicators of the benefits of broader economic expansion.
Looking ahead, Ali said sustained growth would depend on continued diversification, productivity improvements and strategic investment.
“We have to continue to invest heavily in the economic diversification of our country,” he said.
According to the President, the ultimate objective is for economic growth to translate into lower costs, expanded opportunities, and improved access to services.
“Every citizen, every household, will enjoy the growth and the expansion and will continue to enjoy the growth and expansion of our economy,” Ali said.