Sector performances underscore need for structural fixes

Sector performances underscore need for structural fixes – Finance Minister

Oct 07, 2016 News

When it comes to the performance of the economy for the first half of the year, Finance Minister, Winston Jordan, is of the view that there is a need for significant improvements going forward.

Finance Minister, Winston Jordan

The economist asserted that performances in terms of growth demonstrated a need for structural fixes in key sectors, the need for capacity gaps to be addressed, data gaps to be filled and the need to improve operational efficiencies.
The Finance Minister said that the economy’s vulnerability to a range of shocks including global economic volatility and weather phenomena – like El Niño – demonstrates a need for greater diversification and deliberate policies to secure greater resilience.
Jordan said that public sector performance must improve in its timeliness and results-based orientation in order to improve both programme and project implementation which will ensure improved service delivery across all sectors.
He said , too, that during the second half of the year, it is expected that the actions and policy initiatives taken during the first half will result in the revised outlook having an improved fiscal deficit notwithstanding the anticipated lower GDP growth of 4 percent.
The Finance Minister said that while there are several downside risks to the macro-fiscal economic outlook on both the domestic and external fronts, they are not insurmountable.
He said that concerted and proactive efforts towards realizing the good life on the part of government, private sector and individual citizens, collectively, will continue to stimulate growth, restore confidence and strengthen resilience.

Chartered Accountant, Sase Singh

Altogether Jordan said that these will augur well to usher in the good life for all.
Even though Jordan is optimistic that the economy will continue on its four percent growth path this year, other financial critics feel otherwise.
Chartered Accountant , Sase Singh, said that as other markets across Latin America and Asia face short-term challenges, the outlook for Guyana remains even more challenging and thus it seems not fit enough to gather speed and create greater opportunities for its population.
Singh said, “A growth rate of four percent, if it is achieved in 2016, and that is a big if, will not benefit the poor and the working class adequately because our economy is not properly designed to filter down these benefits to the poor because of a badly constructed economic policy framework. The Government in its ambitious plans going forward must correct this.”
He continued, “Sugar production is down 30 percent, rice production is down 26 percent, forestry is down 16 percent, bauxite is flat, manufacturing is down 14 percent, the wholesale and retail trade is behind by 11 percent and construction has fallen by eight percent.
“The only thing doing well is gold because of the two large foreign gold mines. Guyana is not gold alone. It is a collection of many economic sectors.”
Singh opined that over all, the competitiveness of the Guyanese economy is flat lining.

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