Economy Flourishes: Guyana Records 49.7% Growth
President Ali unveiling the commemorative plaque for the new Citizens Bank Mandela branch on Friday. Photo: Guyana Public Information.
Economic Overview
Guyana’s Gross Domestic Product (GDP) has grown significantly by an estimated 49.7 per cent in the first half of 2024. The growth is attributed to oil and gas revenues, in addition to the expansion of the construction sector by an estimated 43.7 per cent.
Banking Sector Transformation
The banking and financial sector in Guyana has undergone a transformative period since 1992. The government’s initiatives have led to a notable improvement in deposits, assets, and credit to the private sector. The sector has also experienced several waves of financial sector reforms, which has triggered a ripple effect across various sectors. This is evident in the reduction of non-performing loans by 145 per cent since 2019.
Innovation and Access to Financing
To continue driving growth, the government plans to update the Financial Institutions Act (FIA) to modernise Guyana’s banking sector. This will align it with international banking standards, allowing for the representative offices of international banks to showcase their financial products, stimulate foreign direct investment, and increase access to credit for local corporate borrowers. Furthermore, low-interest rates for poultry farmers, increased mortgage ceilings, and a $100 million loan agreement with Small Business Development Finance Trust Incorporated (SBDF) to support small and medium enterprises demonstrate the government’s dedication to improving access to financing.
Bank Performance
Citizens Bank has played a significant role in Guyana’s development, transformation, and integration into the international economy. The bank is launching a new Mandela Branch with 27 staff members, offering a seamless, consistent delivery of products and services, along with a social zone featuring tutorials, coaching, and assistance for customers utilizing its digital services.
ConConclusion
Guyana’s strong growth demonstrates its potential for continued prosperity and is an indication of the effective policy framework in place to address any challenges. The government’s continued support for innovation and access to financing initiatives, combined with the banking sector’s resilience and efficiency, will ensure the nation continues to thrive.
FAQs
What was Guyana’s economic growth in the first half of 2024? – 49.7%
How significant is the growth attributed to the non-oil economy? – 12.6%
What has driven Guyana’s construction sector growth? – Construction of buildings and infrastructure
What changes to the Financial Institutions Act (FIA) aim to achieve? – Updating financial standards, allowing international banks, stimulating foreign direct investment, and increasing local borrowing
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