Economy performed better in first half of year over same period last year - Kowlessar Stabroek News August 26, 2000 The economy performed better in the first half of the year, compared to the same period last year, but government says it needs to be able to better manage risks of all types and in all sectors. A growth of 2.86% was recorded for the first half of the year because of a recovery in mining, the support services sectors and higher labour productivity, reported Minister Saisnarine Kowlessar yesterday at an investment seminar at the Le Meridien Pegasus. This was better than for the corresponding period last year, which recorded a GDP (Gross Domestic Product) of 2.1%, said the Minister in the Officer of the President with responsibility for Finance. Speaking at a forum yesterday on Investment Opportunities in Guyana, Kowlessar observed that during the first six months of the year, there has been some sluggish growth in consumption expenditure which was affected in part by the rise in imported fuel costs and domestic food prices which were sensitive to the vagaries of local weather conditions. He said non-food prices, excluding fuel, contributed to inflation being contained to encouraging levels close to a long-run annual target of 4.5 per cent. The first half inflation rate was 1.9%. "These factors combined to act as a mixed blessing, since they resulted in our overall surplus on the balance of payments and our reserve position maintaining a comfortable level of approximately four months of imports...[and] despite a deceleration of export growth the exchange rate was kept well close to the level registered at the beginning of the year." But, he cautioned, all is not well at this time as government is still concerned about "our inability to rapidly restructure our economy and to be able to reduce our vulnerabilities to internal and external shocks. Moreover, we do not yet have in place all of the systems to allow for an orderly removal of old restraining economic structures," stated Kowlessar. However he has predicted faster growth for the next decade, adding that Guyana is perhaps "best positioned" to take advantage of international markets, such as in the area of electronic commerce which would allow small customers and producers to interact at a cost that is "little." In planning to get there, Kowlessar referred to the National Development Strategy, the 10-year economic plan, which projects a 6% to 9% long-term growth rate. According to Kowlessar, linkages and policies to reduce uncertainties in the financial sector and widen sources of funding, "would help firms and household(s) maintain appropriate gearing ratios - debt to equity ratio as well as allow for orderly [loan] portfolio management." Coupled with the conscious inclusion of the private sector and non-governmental organisations, would be the development of the individual. The latter will come about through a pattern of real sector expansion envisaged for the next decade which is premised on the development of small privately-owned firms with transparent operations, Kowlessar stated. "Our government intends to guarantee this by honouring the recommendations of the [NDS] to increase expenditure on education, health and the human resources into an even more productive resource imbued with an entrepreneurial spirit. Emphasis will be placed on preventing the observed pathologies in the social sectors, such as substance and other forms of abuse to make the family healthier, physically and emotionally. Efforts will also be directed to ensuring that our senior citizens can continue to make positive contributions to the development drive through government's expenditure programmes." The investment seminar attracted under 50 persons out of the 120 invited by the Guyana Office for Investment (Go-Invest), and the Tourism and Hospitality Association of Guyana (THAG), which both co-hosted the one-day exercise to coincide with the current GuyExpo' 2000. Follow the goings-on in Guyana in Guyana Today