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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 Top 100 Caribbean Companies and CEO – 2024 Digital Edition

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Jamaican Businesses Encouraged To Take Advantage Of Existing Trade Agreements

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Jamaican businesses are being encouraged to take advantage of the island’s existing trade agreements to boost competitiveness and expand into new markets.

Vice President, Exports, Jamaica Promotions Corporation (JAMPRO), Sonja Linton, highlighted the significant opportunities available through these agreements, many of which, she said, are currently underutilised.

She was speaking at the Business Acceleration Centre (BAC) Accelerator Series at the Terra Nova All-Suite Hotel in Kingston on Thursday (February 6).

Jamaica has about 20 trade agreements relating to contract manufacturing, offering reduced rates for goods entering the United Kingdom (UK) and European Union (EU).

These arrangements enable businesses to price their products more attractively in international markets.

However, many Jamaican companies are not fully utilising these agreements due to a lack of awareness or understanding.

Ms. Linton emphasised the potential for growth through contract manufacturing and white labelling, stating, “this is an opportunity for companies in Jamaica to make products under other labels… . You have a contract to manufacture 100 soaps for the Marriott group, you send it off to them, and that’s it”.

This model allows businesses to focus on production, reduce distribution costs, and utilise excess capacity.

The Trade Board and Customs Agency websites offer comprehensive information on trade agreements, including the CARIFORUM-EU agreement, which covers the United Kingdon (UK) and Europe.

Ms. Linton urged businesses to explore these resources.

“I invite you to visit the Trade Board website and learn some more about the trade agreements…; trade agreements can be quite beneficial, and if you’re operating in the Special Economic Zones (SEZs) and you are making use of these trade agreements, you can see the opportunity [to be] competitive wherever you go,” she said.

She stressed that by leveraging these trade agreements, Jamaican businesses can enhance their competitiveness, access new markets, and drive economic growth.

JIS

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CARIBIZTECH 2025 “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future”

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A Silicon Mountain Project – Artificial Intelligence Summit 2025, Silicon Mountain Mandeville Manchester Jamaica. October 1-3 2025.

2025 Event Theme: “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future.”

Event Structure: • Duration: 2 days   • Format: In-person   • Sessions: 4 thematic segments, each featuring a keynote presentation followed by two panel discussions

Key Features of CARIBIZTECH:

Expert Keynotes & Panels: Industry leaders from across the Caribbean and beyond will share insights on AI and its impact on, Logistics, Fulfillment, and Transportation, Fintech Innovations and Mobile Payments, E-commerce, Voice Commerce, and Social Commerce cybersecurity, cloud computing, and other emerging technologies.

Startup Ecosystem & Pitch Competitions: CARIBIZTECH will feature a showcase for startups to pitch their ideas, enabling entrepreneurs to connect with venture capitalists and investors.

Workshops & Training: Participants will engage in hands-on sessions aimed at upskilling in areas like blockchain, data science, and AI.

Networking & Collaboration Hubs: CARIBIZTECH will create spaces for participants to build partnerships, echoing the community-building focus of the event.

Celebration of Regional Talent: A special emphasis will be placed on spotlighting Caribbean-born innovators and fostering collaboration between local and international stakeholders.

Impact Goals:

  1. Foster a thriving tech ecosystem in Mandeville Central Jamaica.
  2. Attract global attention and investment to Silicon Mountain.
  3. Cultivate a culture of innovation and collaboration across the region.

Day 1:

Session 1: Revolutionizing Logistics, Fulfillment, and Transportation with Generative AI

• Keynote Presentation: “AI-Driven Logistics: Navigating the Future of Caribbean Transportation” Overview: Examine how Generative AI is optimizing supply chains, enhancing delivery systems, and transforming transportation networks in the Caribbean.

• Panel Discussion 1: “Smart Ports and AI: Enhancing Maritime Logistics” Overview: Explore the integration of AI in port operations to improve efficiency and security.

• Panel Discussion 2: “AI in Urban Mobility: Redefining Public Transportation” Overview: Discuss AI applications in public transit systems to enhance commuter experiences.

Session 2: The Evolution of Commerce: E-commerce, Voice Commerce, and Social Commerce in the Age of AI

• Keynote Presentation: “Voice-Activated Shopping: The Next Frontier in Caribbean Retail” Overview: Delve into how AI-powered voice commerce is reshaping consumer interactions and purchasing behaviours.

• Panel Discussion 1: “Social Commerce Strategies: Leveraging AI for Business Growth” Overview: Discuss how businesses can utilize AI to enhance social media-driven sales.

 Panel Discussion 2: “AI Personalization in E-commerce: Enhancing Customer Experience” Overview: Examine AI’s role in creating personalized shopping experiences to boost customer satisfaction and loyalty.

Day 2:

Session 3: Fintech Innovations: Redefining Mobile Payments with Generative AI

• Keynote Presentation: “AI-Powered Fintech: Revolutionizing Mobile Payments in the Caribbean” Overview: Explore how Generative AI is enhancing security, efficiency, and accessibility in mobile payment solutions.

 Panel Discussion 1: “Blockchain and AI: Securing the Future of Digital Transactions” Overview: Discuss the convergence of AI and blockchain technologies in creating secure payment ecosystems.

• Panel Discussion 2: “Financial Inclusion through AI: Expanding Access to Banking Services” Overview: Examine how AI-driven mobile payment solutions are promoting financial inclusion in underserved communities.

Session 4: Generative AI: Shaping the Future of Technology and Business

• Keynote Presentation: “The Creative Machine: Unleashing the Potential of Generative AI” Overview: Provide an in-depth understanding of Generative AI and its broad applications across various industries.

 Panel Discussion 1: “Ethical Considerations in AI: Balancing Innovation and Responsibility” Overview: Discuss the ethical implications of AI development and deployment, emphasizing responsible innovation.

 Panel Discussion 2: “AI and the Future Workforce: Preparing for Emerging Opportunities” Overview: Explore how AI is transforming job markets and the skills required for future employment.

Day 3: Additional Features to Enhance Appeal (Optional)

Caribiztech 2025 aims to provide a comprehensive and engaging experience that addresses the latest trends and opportunities in Generative AI, tailored to the Caribbean context.

Startup Showcase: An Exhibition area where emerging tech startups can present their AI-driven solutions, fostering networking and investment opportunities.   Workshops and Masterclasses: Interactive sessions providing hands-on experience with AI tools and technologies, tailored for different expertise levels.  Networking Events: Organized meetups, including a welcome reception and closing gala, to facilitate connections among attendees.

Diversity and Inclusion Panels: Discussions focused on promoting inclusivity within the tech industry, ensuring diverse perspectives in AI development.

Knights$Angels Investor Pitch Sessions:

Opportunities for entrepreneurs to pitch their AI-based business ideas to potential investors, encouraging funding and collaboration.   “Knights$Angels” is an exciting, high-stakes 60-minute made-for-TV program that brings the world of investment to life by providing exclusive insight into the real-world decision-making processes of investors and how entrepreneurs pitch their ideas.   The show aims to transform how investment is perceived in the Caribbean, focusing on providing a clear understanding of how deals are made and what it truly takes to secure investment.   The programme will specifically focus on Technology and Generative Artificial Intelligence (AI), covering emerging areas like Voice Commerce, Transportation and Logistics, and related tech trends that are shaping the future. Entrepreneurs with innovative ideas in these fields will have the unique opportunity to pitch to investors who are ready to commit capital to fuel the growth of these high-potential ventures.

01 Presentation Opportunities :

For more information on presentation opportunies please email thesiliconmountainproject@gmail.com with the reference “Presentations”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

02 Sponsorship Opportunities

For more information on Sponsorship Opportunies please email thesiliconmountainproject@gmail.com with the reference “Sponsorship”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

03 Exhibition Opportunities

For more information on Exhibition Opportunies please email thesiliconmountainproject@gmail.com with the reference “Exhibitions” or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

 

 Official Event Organisers : 360 Signature Events is an AMK Communications Limited Company. Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean” Mandeville Manchester Jamaica. 360 Signature Events, specializes in organizing Exhibitions, Conventions, Conferences, Seminars, Sporting and Hospitality Events, Road Shows, Brand Promotions, Product Launches, Incentive Programs, and other Special Events. Let us help you make your next event extraordinary. To learn more, check the following link: www.amkcom.com, 360signatureevents@gmail.com

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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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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
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