Fueled by a strong performing oil and gas sector, which has seen increased production and earnings, Guyana’s real economy grew by an estimated 49.7% in the first half of this year, according to the Ministry of Finance’s Mid-Year report. The report noted that the performance in the non-oil sector has also been good, with growth in the non-oil sector estimated to be around 12.6% in the first half of the year.
The Ministry of Finance said the overall outlook for 2024 remains positive, as strong performance in other sectors will maintain the non-oil growth expectation. The overall growth for 2024 is now projected to be 42.3%, with non-oil growth of 11.8 percent.
The mid-year report has estimated growth in the oil and gas industry between January and June to be 67.1%. At the end of June, total crude oil production stood at 113.5 million barrels, compared with 68.7 million barrels in the same period of 2023, the report noted. By June of this year, oil production increased to 624,000 barrels per day.
The report found that bauxite production fell by 20% in the first half of this year, while gold production fell by 10.3%. However, both sectors are predicted to recover by the end of the year. In the Agriculture sector, rice production saw growth of more than 17%, while the sugar industry saw a decline of 60.4%.
The shortfall in sugar production is being blamed on the impact of dry weather conditions over a prolonged period. Still, the Finance Ministry is hoping for a rebound in production during the second half of the year. Other Agriculture sectors, including fisheries and livestock, saw increased production, and the manufacturing sector also recorded its own growth.
In terms of the rise in the cost of living, the report noted that in the first half of this year, the consumer price index saw an increase by 1.6%. The inflation rate is expected to be around 4% by the end of the year. Government expenditure increased by more than 30% in the first six months of the year, when compared to the same period last year.
Source: newssourcegy.com