Guyana’s GDP grew by 49.7 per cent in first half of 2024

– as govt’s prudent policies maintain stable financial system

Guyana’s Gross Domestic Product (GDP) is estimated to have grown by 49.7 per cent in the first half of 2024, driven by the government’s strategic planning and prudent financial policies.

The non-oil economy also saw growth, with an estimated increase of 12.6 per cent, up from 11.7 per cent last year.

This was according to President Dr Mohamed Irfaan Ali, during the opening ceremony of Citizens Bank’s new Mandela Branch in Georgetown, on Friday.

“Therefore, the revised full year forecast for real GDP growth in 2024 is 42.3 per cent,” the president said.

He also noted that the construction sector has expanded by an estimated 43.7 per cent, and while recognising that some sectors faced difficulties early in the year, the government demonstrated its strategy to improve performance.

Stable, regulated financial sector  

The president highlighted the banking and financial sector’s transformation since 1992, identifying significant increases in deposits, assets and credit to the private sector.

However, several waves of financial sector reforms led to a 44 per cent increase in credit to the private sector from 2020 to 2023, triggering a ripple effect across various sectors.

“The first wave of reforms included the implementation of policies to improve the efficiency and competition of the financial services sector, policies to strengthen the prudential framework and bank supervision, policies to develop and deepen financial markets and the modernisation of the payment system,” the head od state said.

Non-performing loans, which were at an all-time high in 2019, but reduced in 2023, reflecting a 145 per cent drop and a drastically improved capacity of borrowers to repay their debts.

The head of state also highlighted several initiatives, such as low-interest rates for poultry farmers and increased mortgage ceilings, demonstrating his government’s dedication to improving access to financing.

Last year, a $100 million loan agreement was also inked with Small Business Development Finance Trust Incorporated (SBDF) to promote the development and expansion of small and medium enterprises in its bid to improve access to financing.

The government also plans to update the Financial Institutions Act (FIA) to modernise Guyana’s banking sector and align it with international banking standards.

The amendments will allow for representative offices of international banks to showcase their financial products, which will in turn stimulate foreign direct investment and increase access to credit by local corporate borrowers.

He lauded the instrumental role that the country’s two indigenous banks – Citizens Bank and Demerara Bank – have played in the development, transformation and integration of the economy.

“We saw the establishment of a stock exchange, the expansion of bank branches throughout the country, and notable improvements, as I said, in the payment system. We saw tremendous improvement in access to credit for the regular man, and this is demonstrated by the number of homes we see being constructed, small businesses, [and] commercial activity,” the president underlined.

He also emphasised the importance of continued innovation as the work continues to position Guyana’s financial sector as a key player in international markets.

Meanwhile, Citizens Bank’s Mandela Branch operations will be supported by a staff complement of 27, and promises seamless, consistent delivery of products and services.

The $1.8 billion state-of-the-art building incorporates many modern features, and will host the banking operations of the Thirst Park branch, commencing September 2.

It will also feature a social zone, offering assistance, tutorials and coaching to customers on how to utilise the bank’s digital services.

President Ali was joined by Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh at the ceremony.