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Guyana 2018-2019 Economic Review

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Economic growth in Guyana increased to 3.4% in 2018. This was mainly due to increased construction activity. Sugar output fell as restructuring of the industry continued, while there was mixed performance in the extractive industries.

Fiscal performance was boosted by a tax amnesty, which increased revenues and helped stabilise the overall deficit.

Public debt as a percentage of gross domestic product (GDP) increased.

Preparation for oil production continues.

Commercial production is due to commence in 2020. This will increase economic growth and provide windfall revenues for the Government of the Co-operative Republic of Guyana (GOGY).

The proposed Natural Resources Fund (NRF) is supposed to help manage the risks associated with this new development, including minimising negative impacts on other non-oil industries.

Reforms to the doing business environment are also necessary to ensure that non-oil industries can become more competitive.

Other risks include political uncertainty.

KEY DEVELOPMENTS IN 2018

Economic growth is estimated to have risen in 2018. Based on Ministry of Finance data, GDP grew by 3.4%, compared with 2.2% in 2017 (see Chart 1). This partly reflected preparation for the first commercial oil production in 2020.

Construction activity rose by 12%. Output from other services was up 15%, linked to increased visitor arrivals.

Of the traditional main industries, sugar output fell by nearly 30%. Restructuring of the Guyana Sugar Company (GuySuCo) was financed by a 5-year external bond issue for $30 billion (3.7% of GDP). This restructuring includes reducing the workforce and divesting assets, in order to reduce subsidies.

The mining industries had mixed fortunes. Gold extraction declined, mainly due to falling declarations by small and medium-scale miners. However, bauxite production was up, and declarations of diamonds, sand and stone increased.

Following consultation, a NRF bill was laid before the National Assembly in November 2018. The purpose of the NRF is to help GOGY manage the significant revenues from oil production, to improve the lives of all Guyanese. A consultation paper set out proposals for how the fund should be administered, including which institutions would be responsible, as well as proposing reporting requirements.

According to the Ministry of Finance, the NRF would follow generally accepted best practices.

Inflation averaged 1.4% in 2018, compared with 1.6% in 2017. The decrease reflected

lower price rises for food and for housing.

Inflationary pressures are expected to increase in the next two years, as the country readies itself for oil production.

Unemployment was much higher for women than for men. Data published by the Guyana Bureau of Statistics (GBS) in 2017 in its Labour Force Survey (LFS) showed that overall unemployment was 12.0%, and that unemployment was higher for women (15.3%) than for men (9.9%).

For young people (aged 15 – 24), female unemployment was 28.0% and male unemployment was 17.3%. The LFS also reported gender disparities in earnings, noting that this was partly due to men working longer hours.

A tax amnesty boosted revenue collection, allowing the fiscal deficit to stabilise. Between January and September 2018, interest and penalties on outstanding tax liabilities were waived. This resulted in extra collections worth about 1.0% of GDP. Total revenue collected was 11.0% more than in 2017.

Total expenditure was 8.7% higher, mainly due to an increase in transfers. Capital expenditure was up 0.7%, although slightly below budget. Performance in public enterprises deteriorated, and their combined

deficit grew. Sugar production at GuySuCo fell, and Guyana Power and Light and Guyana Oil Company both faced higher fuel costs.

The debt stock rose, as did servicing costs.

However, with the economy growing, the ratio of debt to GDP fell to 44.5% in 2018. In addition, Government overdraft was about 6% of GDP (see Chart 3). External debt service increased because of higher principal payments to bilateral and multilateral lenders, rising interest rates, and exchange rate depreciation. The fall in domestic debt reflected a lower stock of treasury bills.

Net credit from the banking system increased.

Meanwhile, further measures were taken to strengthen the financial sector. Net domestic credit grew by 13.6% in the first 10 months of 2018, reflecting higher loans to both Central Government and the private sector.

Commercial loans were up for agriculture, manufacturing and construction but down for mining. The ratio of gross non-˗performing loans to total loans was 12.8% at the end of June, 22 basis points less than in June 2017.

Bank capitalisation continued to be satisfactory, with the Capital Adequacy Ratio improving from 29.2% to 30.6% in the year to June. To help strengthen financial sector resilience, four bills were submitted to

Parliament in April. In addition, the Bank of Guyana (BOG) established a Financial Stability Unit to monitor and identify risks.

The pressure on Correspondent Banking Relationships continued to ease, although charges for some cross-border transactions increased and some of the banks received limited services.

Gross international reserves fell to just above three months of imports (see Chart 4). The

overall deficit tripled to 4.9% of GDP. The current account deficit worsened as export earnings fell and imports rose, especially fuel.

The services deficit also deteriorated. The financial account surplus strengthened, thanks to higher foreign direct investment and loan disbursements. The balance of payments deficit was funded by debt relief and debt forgiveness worth US$76.6 million, as well as the drawdown on international reserves.

OUTLOOK

Guyana is on the verge of a sharp increase in economic growth but immediate prospects partly depend on ending political uncertainty.

In the November 2018 budget speech, the Ministry of Finance (MOF) was targeting 4.6% GDP growth in 2019, with all major sectors contributing. However, increased political uncertainty in early 2019 may dampen this momentum. The National Industrial and Commercial Investments Limited bond issue will push total public and publicly guaranteed debt above 60% of GDP in 2019 but that ratio is projected to decline sharply after 2020.

Note: $ refers to Guyanese Dollars (G$). US$ refers to United States Dollars. US$1 = G$208.5.

Source: Regional Economic Summary 2018 Caribbean Development Bank

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Businessuite News24

itel Opens its Doors in Belize City

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After 2 years of remote operations and less than one year since construction began, itel has now officially opened its Belize City location. The 40,000 square foot facility will eventually house over 700 call center agents plus support staff signaling a huge investment in the Central American country.

This expansion is part of itel’s strategic growth into untapped markets that are ripe for innovation and offer competitive advantages that support customer experience (CX) delivery for emerging high potential industries. Despite an ongoing economic downturn that has affected many CX providers globally, itel has remained resilient and steadfast in its commitment to diversifying its nearshore operations to attract North American brands.

Belize has a relatively young outsourcing industry that has experienced tremendous growth of over 80% since 2005. It’s considered a great value destination due to its high workforce availability, skilled labor pool, a low attrition rate of 10% and the government’s competitive investment program aimed at diversifying the country’s economic activity beyond tourism. Belize City is the country’s hub for its outsourcing industry and itel’s facility is located at the commercial center with easy access for team members to travel in and out of the city from the surrounding areas.

“We’re seeing strong interest from clients who are recognizing Belize as a great alternative to some of the saturated markets, both in the region and offshore, where it’s getting harder and more expensive to recruit and retain talent,” stated Yoni Epstein, CD, itel’s founding Chairman and CEO. “We dipped our toe into the market in 2022 through a partnership and work-at-home model, but we decided to go all in in 2023 and we are opening our doors with a committed base of clients and a pipeline eager to discover what Belize has to offer.”

Belize is the only Central American country with English as its official language.
UNESCO ranked the country 13 th globally for investment in education in 2021 and its bilingual talent pool has a strong affinity to North American culture. For these reasons, as well as its proximity to the US, Belize offers competitive advantages that clients can leverage to provide tailor-made customer experiences and lower their CX delivery costs by staying closer to home.

“We’ve been impressed with the welcome itel has received in the country so far and look forward to continuing to partner with the Government of Belize, local vendors and other stakeholders as we bring clients in to explore its infrastructure and culture. It’s time to invest in Belize outsourcing and as the Caribbean’s largest homegrown CX partner, we’re ready to lead the way,” expressed Epstein.

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Business Events

Jamaica Stock Exchange Regional Conference “Guyana’s Capital Markets: Wealth Creation and Retention”.

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This conference will be held on October 8 – 9, 2024, at the Pegasus Suites and Corporate Centre, Seawall Road, Kingston – Georgetown, Guyana.

Guyana’s Conference will be centred on the theme, “Guyana’s Capital Markets: Wealth Creation and Retention”. The President of the Co-operative Republic of Guyana and Commander-in-Chief of the Armed Forces, His Excellency Dr Mohamed Irfaan Ali is expected to open the Conference. He will be joined by visiting government dignitaries from Jamaica, other Caribbean Regions, and the rest of the Diaspora.

For More Information CLICK HERE

 

Walkbout Global Adventures
“Explore The World, Live The Culture, Go Beyond The Destination”

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Businessuite News24

Experience Premium Travel with JUTA Express Powered by InterMetroOne – Corporate Feature

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Traveling across Jamaica has just been elevated to a new level of comfort, convenience, and safety with the introduction of JUTA Express powered by InterMetroOne. This premium bus and coach service, available through the InterMetroOne app, is set to revolutionize travel for both visitors to the island and locals alike, offering a seamless and luxurious way to navigate Jamaica’s main towns.

A Legacy of Excellence

The Jamaica Union of Travellers Association (J.U.T.A.) has been a cornerstone of Jamaican transportation since its inception in 1974. With chapters in major locations such as Mandeville, Portland, Montego Bay, Ocho Rios, Falmouth, Negril, and Lucea, J.U.T.A. boasts a fleet of over 6,500 vehicles, making it the largest transportation company in the Caribbean. Known for its superior customer service, safe and courteous operators, and exceptional staff, J.U.T.A. has set the standard in public transportation. Their commitment to excellence has earned them numerous awards and a sterling reputation among tourists, locals, and corporate clients alike.

Unmatched Comfort and Safety

At JUTA Express, powered by InterMetroOne, your safety and satisfaction are our top priorities. By partnering with J.U.T.A. we ensure that every journey is handled by professional and dedicated operators who are committed to your well-being. From the moment you board until you reach your destination, you can rest assured that we have your comfort and security covered.

Comprehensive Services

JUTA Express offers a broad range of services designed to meet the diverse needs of travelers. Whether you are commuting for work, heading to school, or embarking on a group tour, we have the perfect transportation solution for you. Our services include:

  • Ground Transportation: Reliable and efficient travel across Jamaica’s main towns.
  • Tourism Transportation: Seamless connections to and from major tourist destinations.
  • Staff and Student Contracts: Dependable transport solutions for educational institutions and businesses.
  • Group Tours and Fun Days: Enjoy organized and hassle-free excursions.
  • Airport Transfers: Stress-free transport to and from Jamaica’s national airports.
  • Conventions and Meetings: Coordinated travel for corporate events and large gatherings.
  • Luxury Coach Buses: Accommodations for delayed flights and special occasions.

Book with Ease Using InterMetroOne

The InterMetroOne app makes booking your travel with JUTA Express simple and convenient. Available on both Google Play and the App Store, the app provides a user-friendly interface where you can plan and manage your trips with ease. With just a few taps, you can schedule rides, track your journey in real-time, and enjoy exclusive perks and rewards.

Why Choose JUTA Express Powered by InterMetroOne?

  1. Professional Service: Experience the best in Jamaican transportation with J.U.T.A.’s highly trained and courteous operators.
  2. Safety and Security: Travel with peace of mind, knowing that your well-being is our top priority.
  3. Comfort and Convenience: Enjoy spacious, air-conditioned buses with complimentary snacks and drinks.
  4. Seamless Integration: Book, track, and manage your trips effortlessly with the InterMetroOne app.
  5. Trusted Legacy: Benefit from J.U.T.A.’s decades of experience and award-winning service.

Join Us on a Journey of Excellence

Whether you are a visitor exploring the vibrant culture of Jamaica or a local navigating your daily commute, JUTA Express powered by InterMetroOne is your ideal travel companion. Download the InterMetroOne app today and discover a new standard of transportation that combines the reliability of J.U.T.A. with the innovative technology of InterMetroOne.

Experience the Difference. Travel with JUTA Express Powered by InterMetroOne.   

 

JUTA’s transportation solution

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Artificial Intelligence

AMK Communications Pioneers AI-Generated Advertising Campaign for InterMetroONE

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In a landmark move set to redefine the advertising landscape, AMK Communications, through its subsidiary Click Digital Agency, is poised to launch Jamaica’s first AI-generated advertising campaign for the revolutionary InterMetroONE super app. This ground-breaking initiative not only marks a significant milestone for Jamaica but also positions AMK Communications as a leader in innovative marketing strategies within the Caribbean region.

A New Era of Advertising

The introduction of AI-generated advertising heralds a new era of creativity and efficiency in marketing. By leveraging advanced artificial intelligence, AMK Communications can produce highly targeted, data-driven campaigns that resonate deeply with diverse audiences. This technology enables the creation of personalized content at scale, ensuring that every message is relevant and engaging.

Unparalleled Benefits for Clients

For clients, the benefits of AI-generated advertising are manifold:

Enhanced Creativity: AI tools can analyse vast amounts of data to generate unique, creative concepts that might not emerge through traditional brainstorming sessions. This opens up new avenues for storytelling and brand expression.

Data-Driven Insights: AI provides valuable insights into consumer behavior and preferences, allowing for more precise targeting and message customization. This ensures that marketing efforts are not only creative but also strategically aligned with audience interests.

Efficiency and Scalability: AI can rapidly produce multiple variations of ads, testing and refining them in real-time to optimize performance. This reduces the time and cost associated with traditional ad creation and allows for quick adjustments based on market feedback.

Personalization at Scale: With AI, it’s possible to create highly personalized advertisements for large audiences, ensuring that each viewer receives a message that feels uniquely tailored to them. This enhances engagement and drives better results.

Setting Trends in the Caribbean

AMK Communications’ initiative is part of a broader trend towards the adoption of AI in advertising. Globally, AI is being used to create more dynamic, interactive, and personalized ad experiences. From chatbots and virtual assistants to AI-driven video content, the possibilities are endless. This move by AMK places Jamaica and the Caribbean at the forefront of these international developments, showcasing the region’s ability to innovate and lead in the digital age.

Looking Ahead

The AI-generated campaign for InterMetroONE will serve as a benchmark for future marketing efforts, demonstrating the power and potential of artificial intelligence in advertising. As AI continues to evolve, it will unlock even more opportunities for creativity and efficiency, helping brands to connect with their audiences in deeper, more meaningful ways.

AMK Communications Limited and Click Digital Agency are not just launching a campaign; they are setting a new standard for the industry, proving that the future of advertising is here and it is powered by AI. Clients can look forward to a new realm of possibilities, where technology and creativity come together to deliver exceptional results.

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Business Insights

Who Is Gervase Warner, Former President and CEO of Massy Holdings?

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Early Career and Rise to Leadership
Gervase Warner, a distinguished figure in the Caribbean business landscape, has been an influential leader in the region. Before joining Massy Holdings, Warner had a thriving career in consultancy, working with McKinsey & Company. His decision to leave this high-profile consultancy role and return to Trinidad and Tobago to work with Massy was driven by a desire to reconnect with family and contribute to the Caribbean’s advancement​.

Tenure at Massy Holdings
Warner’s tenure at Massy Holdings was marked by significant growth and strategic initiatives. Under his leadership, Massy expanded its footprint across the Caribbean and into Latin America, notably increasing its retail, motor, and gas products businesses. Warner emphasized the importance of a strong corporate culture, which he believed was crucial to the company’s success​​.

He also advocated for a regional stock exchange, which he saw as essential for improving price discovery and parity across Caribbean markets. This initiative aimed to integrate stock exchanges from Barbados, Jamaica, Trinidad, Guyana, and the OECS, drawing inspiration from Africa’s Pan-African Payment and Settlement System​.

The Whistleblower Incident and Resignation
Warner’s leadership faced a significant challenge in late 2023 when Angelique Parisot-Potter, Massy’s former General Counsel and Executive Vice-President of Business Integrity, publicly disclosed concerns about a leadership training program during the company’s Annual General Meeting. Parisot-Potter alleged that the program, which involved bizarre rituals and frequent travel to Florida, was misusing company funds. This led to her being placed on administrative leave and eventually resigning​.

The incident sparked internal and public scrutiny, culminating in Warner’s resignation in early 2024, nearly a year ahead of his planned retirement. The abrupt departure raised concerns about the potential destabilization of Massy Holdings and highlighted the challenges of maintaining corporate reputation amidst internal controversies​.

Legacy and Future Directions
Despite the controversy, Warner’s legacy at Massy Holdings includes a strong emphasis on leadership development and strategic expansion. His vision for a regional stock exchange and his efforts to enhance Massy’s market presence have set a foundation for future growth.

Warner’s successor, David Affonso, a 34-year veteran of Massy, was appointed to lead the company forward. Affonso’s experience and leadership within the Integrated Retail Portfolio, which constitutes a significant portion of Massy’s revenue and profit, are expected to guide the company through this transition​.

Insights into Management Style
Warner’s management style was characterized by a deep commitment to leadership development and a belief in the power of corporate culture. He often highlighted the importance of vision, grit, and surrounding oneself with talented individuals. His approach to business emphasized long-term growth through consistent effort and strategic planning​.

Conclusion
Gervase Warner’s tenure at Massy Holdings was a period of strategic growth and expansion, albeit marked by significant challenges. His leadership style and vision for a regional economic integration have left an indelible mark on the Caribbean business landscape. As Massy Holdings moves forward under new leadership, the principles and strategies Warner championed will likely continue to influence the company’s direction and success.

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