Guyana's Economy Soars: 49.7% GDP growth in 1st half of 2024

Guyana: The Gross Domestic Product of Guyana is estimated to have grown by 49.7% during the first half of 2024, including the oil and gas revenues. 

According to the information, the non oil economy also witnessed a surge, with an estimated raise of 12.6%, up from 11.7% during the same period last year. 

The development was announced by President Dr Irfaan Ali on Friday during his address at the opening ceremony of Citizens Bank's new brand in Guyana. 

He said that the construction sector has expanded with the figures showing an estimated increase of 43.7%. The President further recognized that some sectors faced difficulties early in the years and discussed the strategies to improve performance. 

Dr Ali emphasized that the banking and financial sector's transformation since 1992 has been remarkable. 

The President remarked, "Therefore, the revised full-year forecast for real GDP growth in 2024 is 42.3%."

During his address, he also mentioned that several waves of financial sector reforms led to a 44% surge in credit to the private sector for 2020 to 2023, which eventually triggered a ripple effect across various sectors.

President Ali said that the first wave of reforms included the execution of policies to improve the efficient and competition of the financial services sector, policies to strengthen the framework and bank supervision as well as to develop and deepen financial markets along with the modernization of the payment system.

Not only this, but the head of state also mentioned a number of initiatives, including low interest rates for poultry farmers and increased mortgage ceilings, which shows the government's commitment to improving access to financing.

It was noted that last year, a $100 million loan agreement was also signed with Small Business Development Finance Trust Incorporated to promote the development as well as expansion of small and medium firms in its bid to enhance access to financing.

Dr Irfaan Ali also revealed his administration's plans to upgrade the Financial Institutions Act in order to modernize the banking sector of Guyana and align it with international banking standards. 

These changes will allow for representative offices of international banks to show their financial products which will stimulate foreign direct investments and raise access to credit by local corporate borrowers. All these enhancements in Guyana's financial sector will, in turn, help in pushing the overall economy and GDP.