Latest update December 4th, 2024 2:40 AM
Guyana could suffer economic harm in 2010 – President
President Bharrat Jagdeo serves lunch to soldiers at Base Camp Ayanghanna yesterday.
President Bharrat Jagdeo is optimistic and celebrates the fact that Guyana has not experienced any major ravages of its economy like the rest of the world but says the country is not yet totally in the clear.
Yesterday, he told soldiers that Guyana has experienced a major reduction in remittances and if the recession is prolonged we may face some consequences.
“If the world continues to be where it is (void of any economic dynamism) we may have to face some of these consequences.” He is however optimistic and says that Government “is very cautious about 2010 and is managing resources carefully.”
Over the past 18 months the world lost $30 trillion of value, stock exchanges around the world collapsed, currencies depreciated, house prices fell significantly and many people couldn’t pay their mortgages.
In addition, 20 million people worldwide lost their houses while 50 million people lost their jobs.
Closer home, in the region, CLICO collapsed and the tourism industry reeled from the impact of the global crisis while countries such as Antigua and Barbuda at present can’t pay wages and salaries.
“Jamaica has seen its currency being depreciated significantly and it has lost several aluminium factories. Almost every country in the world and in the region has experienced some form of effect except for Trinidad because of its oil wealth,” President Jagdeo said.
2009 has been a rough year for the world economically, the president said. Though Guyana is included it is not as hard hit as most countries around the world and in the Caribbean Region, he added.
President Jagdeo, assessing the year, said, “In Guyana we have seen some deviation from our original growth rate.” But fortunately because of the accumulated work that his government has done to get rid of debt there is more fiscal space.
He also credits Government’s creative approach to fuel taxation that has not incurred any major shrinkage in revenue.
The President said that Guyana’s economy has managed to stay afloat and there has not been any major crash in housing crisis. Not many people have lost homes.
He said from his stand point the New Building Society has currently reached its limit in mortgage loans and he recently had to give the commercial banking sector tax free concessions on loans up to $8m resulting in them lending more money at a very concessional rate.
Noting that quite few big projects are nearing completion and are on going the president said, “I want the housing construction to continue in the country.”
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
Deeply concerned about political dysfunction in society
Dear Editor The Guyana Trades Union Congress (GTUC) is deeply concerned about the political dysfunction in society that is... more
Haiti: Tragically Descending into Deeper Crisis
By Sir Ronald Sanders Kaieteur News- As gang violence spirals out of control in Haiti, the limitations of international... more
Weekend Cartoon
