Singh forecasts 20.9 percent GDP growth for 2021

Guyana’s economy will grow by 20.9 percent this year Minister with Responsibility for Finance Dr
Ashni Singh is projecting. The nascent petro-sector is fueling most of the real gross domestic product
(GDP) swell, Singh said stating that the traditional sector (called the non-oil economy) will improve
by 6.1 percent.
The projected GDP growth for this year will reverse the significant 7.3 decline experienced in
Guyana for 2020 most likely the result of the havoc wreaked by the COVID-19 global pandemic. The
deadly, contagious virus has killed more than 2 million worldwide and 180 in Guyana.
In his $383.1B budget speech, the Senior Minister in the Office of the President (OP) with
responsibility for Finance said this year GPD projection assumes life will be back to normal with the
economy fully reopened with the severe restrictions caused by the deadly, contagious COVID-19
virus gradually lifted.
By sector, the agriculture, forestry and fishery sectors is projected to expand by 5.6 per cent,
influenced by across-the-board growth in all sub-sectors.
The perennially ailing sugar industry will bounce back growing by almost double-digit figures, Singh
said in his announcement. Singh’s confidence in the sweetener industry rests on the GUYSUCO
restructuring plan, the re-capitalisation of sugar estates, and improved production forecast.
Introduction of new, high-yielding grains is credited to drive the 3.5 percent expansion of the rice
sector Singh forecasted for this year. At the same time, the forestry, livestock, other-crops and fishery
industries are expected to grow by 18.5 per cent, 5 per cent, 5 per cent, and 11.1 percent respectively
in anticipation of higher demands.
The extractive industries headed by petroleum, bauxite and gold mining will grow close to 40 percent
– 39.1 to be precise – for fiscal year 2021.
Specifically, the oil and gas sub-sector is projected to grow by 46.7 per cent with the daily rate of oil
production slated projected at just over 109,000 barrels of oil per day. Gold mining hampered in 2020,
is expected to grow by 4.2 per cent this year, largely on resumption of operations across the sector.

Bauxite is expected to recover and grow by 18.4 per cent. Similarly, mining and quarrying which also
suffered last year because of a dip in demand, is projected to recover, and grow by 19.8 per cent in
2021.

Guyana GDP Growth Rate – Historical Data

Year GDP Growth (%) Annual Change

2019 5.35% 0.91%

2018 4.44% 0.71%

2017 3.73% -0.07%

2016 3.81% 3.12%

2015 0.69% -1.00%

Manufacturing will climb by 7.3 per cent this year on account of anticipated growth in sugar, rice, and
other manufacturing. The three sub-sectors are expected to grow by 9.6 per cent, 8.7 per cent and 6.2
per cent, respectively.
The Finance Minister said with the resumption and expansion of public sector construction through
the Public Sector Investment Programme (PSIP) along with a 9.1 percent private sector growth.
Services will improve by five per cent driven largely by projected expansions in wholesale and retail
trade, transportation and storage, and financial and insurance activities projected to swell by 10 per
cent, 9.9 per cent and 7 per cent, respectively according to figures Singh gave in his 2021 budget
presentation.