Businessmen most disturbed by crime, local currency

Jan 03, 2009 News

The 14th Business Outlook Survey (BOS) of Guyana, conducted and published by Ram & McRae, saw the world facing uncertainty and fear in its worst economic challenge in 80 years.

Just before the start of the survey, Minister of Finance, Dr Ashni Singh, presented the 2008 Mid-Year Report, in which he reported that driven by improved performances in agriculture, mining, engineering, and construction and services, the economy had recorded a 3.8 percent GDP growth during the first half of 2008.

President Bharrat Jagdeo announced in his New Year’s Message that, for the year, the economy grew by three percent, indicating that the economy deteriorated in the second half of 2008.

In the Mid-Year Report, it was reported that domestic debt kept rising alarmingly over the past few years.

The Bank of Guyana Report showed that the stock of the Government’s domestic bonded debt increased by approximately 7.6 percent, while, at the same time, its externally public and publicly guaranteed debts rose by an approximate 16.8 percent from the end of June 2007.

Following the windfall from Value Added Tax (VAT) in 2007, VAT and Excise Tax were budgeted to increase by some 12.8 percent to $41.4 billion in 2008. Fifty-seven percent of businesses said that VAT made no difference to their ability to compete, while 39 percent reported a negative impact.

At the same time, the Government of Guyana won overwhelming support on its offer to the international community to preserve the rainforest, for hosting of Carifesta X, and for the liberalization of the flour market.

The results of the Business Outlook Survey for 2008 showed that the issues which caused the most pessimism were: the level of crime (60 percent, against 18 percent who were more optimistic); crisis on the world credit market (58 percent pessimistic, with 18 percent seeing this as ground for more optimism); inflation, 56 percent pessimistic, as against 24 percent who are more optimistic; the value of the Guyana dollar (46 percent versus 18 percent), and the level of consumer confidence (44 percent versus 26 percent).

The Economic Partnership Agreement (EPA) generated wide debate and controversy, and was seen by most of the Business Outlook Survey 2008 respondents as having no impact on their optimism or pessimism concerning the economy.

At the same time, respondents of the survey said that there was a favourable impact from the settlement of the Guyana/Suriname border dispute.

The survey was designed by Ram & McRae to obtain general information, including turnovers, industry and the number of employees; the performance of business in 2008; respondents’ views on the business and economic environment prevailing in the country; the issues impacting on their performance; their plans for the future and the goals; and strategies and expectations for 2009.

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Businessmen most disturbed by crime, local currency

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