Guyana’s economy recorded a staggering 62.5% growth in 2022, with the traditional non-oil sector expanding by 11.5%, Finance Minister Dr. Ashni Sigh announced during the presentation of the 2023 National Budget today.

In presenting the fourth budget of the current PPP/C administration under the theme, “Improve Lives Today, Building prosperity for tomorrow”, the Finance Minister was quick to point out that while there has been positive growth in majority of the sectors, there has been contractions in some sub- sectors.

He said the global and regional factors must be taken into consideration as Guyana was not immune to global economic shocks.

Guyana has continued to record positive growth in the Agriculture sector which expanded by 11.9% last year due to the positive performance in the rice and forestry sectors which offset the whooping 18% contractions which occurred in the sugar and fishing industry. 

The rice sector grew by 8.5% while there were flooding and other challenges, the Minister said.

The continued poor performance of the sugar industry was due to the 2021 flooding and other factors which were beyond the control of the sugar corporation. Other crops including eddo and similar products expanded by 15% while the production of milk and eggs took a dip.

The Mining and Quarrying sectors as well as the Oil and Gas sector were the main drivers of the country’s positive economic growth, with the mining and quarrying sector recording a 109% growth rate and the Oil and Gas sector recording a 124% growth rate, which was higher than was previously expected. 

Bauxite mining also saw a positive increase of 35%

While the government has boasted throughout the year of the country’s gold reserve, the sector did not perform as expected and contracted by 2.5% while Diamond, sand and stone mining grew by 38.5% and the manufacturing sector saw a growth rate of 22%.

The services sector expanded by 9% with wholesale and retail trade, financial insurance activities as well as storage and transport activities performing well.

While 2022 saw commendable growth, the Finance Minister said that with a possible recession on the horizon, several sectors of the country’s economy will see poor performance this year in several sectors.

Gold prices are projected to decline by 5% this year. The price of crude oil is also expected to take a hit to $83 per barrel, though it will be higher than the five year average.

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