http://www.guyanachronicle.com/news.html
Guyana shows significant growth in productive sectors
- CDB Annual Economic Review 2006
Guyana Chronicle, 9 June 2007
Growth in the productive sectors last year was significant when
compared to 2005 while mining and quarrying was the only sub-sector
estimated to have registered a decline. This is according to the 2006
Annual Economic Review of the Caribbean Development Bank (CDB).
The Review stated that real GDP growth was estimated at 4.7% in 2006
compared with revised growth of -1.9% in 2005. The turn-around in the
performance was credited to both the agriculture and non-agriculture
sectors rebounding.
In the Sugar sector, the production grew by 5.5 percent to 259,588
tonnes last year as compared to 246,050 tonnes in 2005. This was due to
severe flooding at the estates. However, the Review stated that this
was still below the five-year production average of 297,858 tonnes as
well as the record high of 331,067 tonnes produced in 2002.
“This notwithstanding, the ongoing modernisation project in the sector
led to higher levels of mechanisation with an associated reduction in
average production cost. In many respects, 2006 can also be considered
a watershed year for sugar as it marked the commencement of the new
price structure governing the EU sugar regime,” the Review noted.
The Review further explained that exports to that crucially important
market were subjected to the first price cut of 5% from July 1, 2006.
This reduction is expected to be applied until October 2008 when an
additional 20% reduction will be in force.
It was stated that a stronger output performance was thwarted by above
average rainfall levels which adversely affected both planting and
reaping conditions, and also served to reduce the sucrose content in
harvested canes thereby limiting sugar yields.
Rice production recorded a growth of 12.4 percent when compared with a
14.1 percent contraction in 2005. Production in 2006 was recorded at
307,041 tonnes, an increase from 277,531 tonnes in 2005. This was due
to more favourable weather conditions in addition to improvements in
husbandry practices, seed quality, and better drainage and irrigation.
“The improved performance was also buttressed by greater public sector
support over the review period particularly through the ongoing
implementation of the EU-funded rice competitiveness project as well as
the agricultural support services project. Among other things, the
interventions were designed to enhance production and boost
productivity by increasing research and extension services, and
infrastructure development, and by providing farmers improved access to
credit,” the Review stated.
The turn-around in the sector was also evident in rice exports as
buoyant prices and further market penetration particularly in Haiti,
led to a 25.8% increase in export volume. The robust export growth was
supported by strong demand in the European market following the
mid-year ban on European imports of genetically engineered rice
products, which affected supplies from the US.
The Review stated, “Output performance in the mining and quarrying
sub-sector continued to be adversely affected by structural changes
ongoing in the sector, involving the closure of large operations.
Output of gold and bauxite continued to contract.”
The closure of the Omai goldmine in the second half of 2005,
contributed significantly to the drop in gold production which
contracted by 25.3% to 200,000 ounces in 2006, compared with 267,556
ounces in 2005. This primarily reflected the past dominance of the Omai
operation.
However, declarations from small and medium-sized operators over the
same period grew by some 23.1% as record high gold prices served to
sustain significant investment in the sector.
In addition, two new medium- to large-scale exploratory operations
which commenced during the year served to boost expectations of higher
production levels in the future. Diamond declarations declined by 7.5
percent to 330,000 carats.
Despite some consolidation in bauxite operations during the year,
including the commencement of operations by a large foreign entity
which purchased the former state-owned bauxite company as a going
concern during the last quarter of 2005, the year 2006 proved very
challenging for production. It contracted by 9.8% compared with growth
of 6% in 2005.
Production of all grades of bauxite fell. In the case of calcined
bauxite, depressed prices forced the temporary closure of one of two
major operations during the year.
“Preliminary estimates indicate a creditable performance by other
sectors and industries in 2006. Significant growth was recorded in
forestry operations (11%), distribution (10%) and engineering and
construction (12%),” the Review noted.
Increased activity in forestry was credited to the strong export
demand, while the growth impetus in distribution and construction was
precipitated by strong domestic demand, particularly in relation to CWC
2007 preparations.
Real output in the manufacturing sector, in transport and
communications, as well as in financial services grew by 4%, 10%, and
8%, respectively, in 2006 compared with growth rates of 2%, 9.5%, and
6.5%, respectively, in 2005.
The increased output in the manufacturing sector partially reflected
further market penetration in both the Caribbean and North America for
value-added products.
“Growth in the telecommunications operations continued to benefit
primarily from liberalisation in the wireless segment of the market,”
the Review stated.(GINA)
Guyana shows significant growth in productive sectors
- CDB Annual Economic Review 2006
Guyana Chronicle, 9 June 2007
Growth in the productive sectors last year was significant when
compared to 2005 while mining and quarrying was the only sub-sector
estimated to have registered a decline. This is according to the 2006
Annual Economic Review of the Caribbean Development Bank (CDB).
The Review stated that real GDP growth was estimated at 4.7% in 2006
compared with revised growth of -1.9% in 2005. The turn-around in the
performance was credited to both the agriculture and non-agriculture
sectors rebounding.
In the Sugar sector, the production grew by 5.5 percent to 259,588
tonnes last year as compared to 246,050 tonnes in 2005. This was due to
severe flooding at the estates. However, the Review stated that this
was still below the five-year production average of 297,858 tonnes as
well as the record high of 331,067 tonnes produced in 2002.
“This notwithstanding, the ongoing modernisation project in the sector
led to higher levels of mechanisation with an associated reduction in
average production cost. In many respects, 2006 can also be considered
a watershed year for sugar as it marked the commencement of the new
price structure governing the EU sugar regime,” the Review noted.
The Review further explained that exports to that crucially important
market were subjected to the first price cut of 5% from July 1, 2006.
This reduction is expected to be applied until October 2008 when an
additional 20% reduction will be in force.
It was stated that a stronger output performance was thwarted by above
average rainfall levels which adversely affected both planting and
reaping conditions, and also served to reduce the sucrose content in
harvested canes thereby limiting sugar yields.
Rice production recorded a growth of 12.4 percent when compared with a
14.1 percent contraction in 2005. Production in 2006 was recorded at
307,041 tonnes, an increase from 277,531 tonnes in 2005. This was due
to more favourable weather conditions in addition to improvements in
husbandry practices, seed quality, and better drainage and irrigation.
“The improved performance was also buttressed by greater public sector
support over the review period particularly through the ongoing
implementation of the EU-funded rice competitiveness project as well as
the agricultural support services project. Among other things, the
interventions were designed to enhance production and boost
productivity by increasing research and extension services, and
infrastructure development, and by providing farmers improved access to
credit,” the Review stated.
The turn-around in the sector was also evident in rice exports as
buoyant prices and further market penetration particularly in Haiti,
led to a 25.8% increase in export volume. The robust export growth was
supported by strong demand in the European market following the
mid-year ban on European imports of genetically engineered rice
products, which affected supplies from the US.
The Review stated, “Output performance in the mining and quarrying
sub-sector continued to be adversely affected by structural changes
ongoing in the sector, involving the closure of large operations.
Output of gold and bauxite continued to contract.”
The closure of the Omai goldmine in the second half of 2005,
contributed significantly to the drop in gold production which
contracted by 25.3% to 200,000 ounces in 2006, compared with 267,556
ounces in 2005. This primarily reflected the past dominance of the Omai
operation.
However, declarations from small and medium-sized operators over the
same period grew by some 23.1% as record high gold prices served to
sustain significant investment in the sector.
In addition, two new medium- to large-scale exploratory operations
which commenced during the year served to boost expectations of higher
production levels in the future. Diamond declarations declined by 7.5
percent to 330,000 carats.
Despite some consolidation in bauxite operations during the year,
including the commencement of operations by a large foreign entity
which purchased the former state-owned bauxite company as a going
concern during the last quarter of 2005, the year 2006 proved very
challenging for production. It contracted by 9.8% compared with growth
of 6% in 2005.
Production of all grades of bauxite fell. In the case of calcined
bauxite, depressed prices forced the temporary closure of one of two
major operations during the year.
“Preliminary estimates indicate a creditable performance by other
sectors and industries in 2006. Significant growth was recorded in
forestry operations (11%), distribution (10%) and engineering and
construction (12%),” the Review noted.
Increased activity in forestry was credited to the strong export
demand, while the growth impetus in distribution and construction was
precipitated by strong domestic demand, particularly in relation to CWC
2007 preparations.
Real output in the manufacturing sector, in transport and
communications, as well as in financial services grew by 4%, 10%, and
8%, respectively, in 2006 compared with growth rates of 2%, 9.5%, and
6.5%, respectively, in 2005.
The increased output in the manufacturing sector partially reflected
further market penetration in both the Caribbean and North America for
value-added products.
“Growth in the telecommunications operations continued to benefit
primarily from liberalisation in the wireless segment of the market,”
the Review stated.(GINA)
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